WASHINGTON (dpa-AFX) - With 80 percent of U.S. hiring managers bracing for a recession, nearly half expecting it within the next year, businesses aren't waiting to feel the impact. They're already shifting gears, scaling back hiring, rewriting long-term plans and making tough choices between protecting today and investing in tomorrow, according to a recent survey.
The Express Employment Professionals-Harris Poll survey data paints a picture of cautious optimism clouded by economic anxiety.
94 percent of those who took part in the survey say a recession would impact their organization, and 60 percent anticipate a major or moderate effect.
36 percent admit their company may not survive a recession this year.
The looming threat is already influencing hiring decisions. More than a third of companies say they would reduce hiring if a recession occurs, up from 30 percent in the spring of 2022, and 17 percent would freeze hiring altogether. In anticipation, 83 percent of employers have taken proactive steps to prepare, including cutting unnecessary expenses, streamlining processes, cross-training employees, not filling vacated roles, and conducting layoffs.
These actions align with projections from the Congressional Budget Office, which estimates that a moderate recession could raise unemployment from 4.2 percent to as high as 7.5 percent, potentially resulting in up to 5 million job losses.
However, the cost of preparation is not just financial; it's strategic. Many companies are already feeling the strain, the survey says.
Despite these concerns, many employers still see opportunities.
78 percent of the respondents believe their company will be in a better economic position by year's end.
58 percent view a potential recession as more of a growth opportunity than a threat.
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