With the announcement this morning that the country’s economic numbers have declined for the second straight quarter, many employers are fearful of a possible recession, or at least a sustained economic downturn – and are wondering what they should do to prepare. After all, we’re dealing with a declining stock market, soaring inflation, and reports of hiring freezes. Meanwhile, your workers are probably on edge and no doubt dealing with inflationary concerns, adding to the tension we all feel each day. What four options should you consider to ensure you are positioning your organization to weather the storm – and what three steps can you take to relieve the inflationary strain that your workforce is no doubt dealing with?
What is a Recession?
It’s important to make sure we’re on the same page when it comes to defining what is and what isn’t a “recession.” Many people think there’s a hard-and-fast rule that says a recession occurs if we have two straight quarters seeing a decline in the gross domestic product (GDP). But the truth is a little more nuanced than that.
Traditionally, the National Bureau of Economic Research determines the unofficial start and end of a “recession,” defined by the non-profit research group as “a significant decline in economic activity spread across the economy, lasting more than two quarters, normally visible in GDP, real income, employment, industrial production, and wholesale-retail sales.”
The first quarter of the year saw a 1.6% contraction...
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