The Bureau of Labor Statistics reports that 16.8% of Americans are unemployed or underemployed, including those who have stopped looking. While the current recession is reportedly coming to an end, unemployment is expected to continue to rise for several more months. This has been a particularly difficult time for many segments of our society.

In the current issue of Maclean’s magazine, it is reported that “this summer, average unemployment for students aged 15 to 24 hit nearly 20 per cent – the second highest rate since 1977, when Statistics Canada first began collecting comparable data. And many of those who managed to obtain entry-level positions before the crash have since been shown the door: this June, the year-over-year increase in the number of youths receiving Employment Insurance reached a staggering 108 per cent. . . .

Boomers are not without their own plight. . . Fear . . . is prompting many older workers to hold on to their jobs longer or return for another kick at the can. . . . Those who are laid off . . . are typically out of work for longer (last year in the U.S. those aged 45 and over spent 22 weeks looking for a job after being laid off; younger workers spent 16 weeks)and upon their return to work, are often forced to take significant cuts in their salaries and standard of living . . . .”

Since recessions seem to occur every six or seven years, what are some of the lessons we all can learn from this past year? According to Dr. Bruce Arnstzen, Senior Research Director at the MIT Center for Transportation and Logistics, there are a number of discernable trends that we should all be aware of. This blog focuses on some of the key themes that he highlighted during a recent Logistics Management webinar. They suggest that there are steps that many of us should take now, as logisticians and transportation professionals, to recession-proof our jobs and careers down the road. They are:

1. Never Stop Networking

While stock prices tend to rise quickly as a recession comes to an end, employment typically takes years to recover. In fact, people will continue to lose their jobs over the next 4 to 6 months. Many people who lost their jobs during the recession did not have a strong network to help them find new employment.

Lesson learned: It is never too late to start networking and it is incredibly important to maintain your networking efforts 52 weeks a year. This suggestion is supported by Allison Graham of Elevate Seminars + Strategic Development, one of Canada’s leading authorities on networking. She makes this point in her book on networking and in her public appearances. Identify your target markets and set in motion a plan to meet people who can help you achieve your business and personal goals. Become internet savvy and ensure your networking efforts encompass a combination of web based and face-to-face initiatives. Networking is not an activity that you “turn on” when you are suddenly out of work and “turn off” when you find employment.

2. Many companies removed fixed costs during the recession and are not looking at adding them back in.

Lesson learned: For those folks seeking to re-enter the workforce, offer to work on contractual or part time basis. This will provide you with cash flow, allow you to prove what you can do for a prospective employer and provide you with an opportunity to determine if the job and company are a fit for you and your skill set. The work experience will broaden your portfolio of skills. It may position you to obtain a full time job down the road.

3. Many companies had not trained their workforce to perform a variety of tasks, thereby reducing their value and creating an inflexible work team.

Lesson learned: Those individuals with limited skill sets are very vulnerable in a recession. Invest in cross-training your workforce so they are able to perform a broader variety of tasks. To strengthen your position down the road, invest in your own training on an ongoing basis. For transportation and logistics professionals in Canada, it is never too late to take a CITT course or P. Log. Join some leading associations in your industry and attend educational events. To raise the bar even further, there are programs such as the Master’s Certificate in Supply Chain Management available at York University’s Schulich School of Business.

4. Poor or inadequate communication with customers and suppliers made the recession much worse since this resulted in excess or unsalable products and parts.

Lesson learned: After the recession, some products (e.g. large homes, SUV’s) are expected to drop in demand while new products (e.g. smaller homes, small commuter cars, wireless reading devices) gain wider acceptance. Increase your networking efforts with your customers and suppliers. Place yourself at the leading edge of what is going on, thereby making you and your company more responsive to their needs and requirements. “Knowledge is Power.” Stay connected to the forces shaping your market. Make sure that your products and services are in line with your customers’ ever evolving needs.

Lessons Learned from this Recession

Invest in yourself and in your employees. Invest time and energy in your education, training and in networking. Create a plan that will make you and your company more recession proof. Set monthly and weekly professional development and networking goals and follow through on these goals with concrete action plans.