Why do some businesses seem to be recession-proof?

The world seems to be currently teetering on the brink of yet another recession.

Although we’re not yet officially in recession, we’re currently just managing to avoid it. The long-term effects of the COVID pandemic along with the war in Ukraine and the fear and uncertainty that has produced have caused major issues for the global economy. The rise in fuel costs in particular has seen inflation surge and serious cost of living problems arise in most countries around the world.

Can my business avoid the effects of recession?

Many people find it surprising that not all businesses are affected by economic downturns in the same way. Some businesses are seen as being “recession-proof” because they tend to remain relatively stable or even thrive during economic downturns. This resilience is often attributed to the essential nature of their products or services, consistent demand, or unique characteristics that make them less susceptible to economic fluctuations.

If you’re looking to change the industry you work in due to the economic downturn you may be interested in some of the below sectors as they do tend to be more resilient during harder economic periods.

Healthcare and Pharmaceuticals

Hospitals and pharmaceuticals maintain stable demand as people always need medical care and essential medications.

Grocery Stores and Discount Retailers

These businesses endure because people require food, clothing, and basic supplies.


Water, electricity, and gas services remain essential, ensuring a consistent demand.


Educational institutions offering job training and certifications often see increased enrollment during recessions as people seek to enhance their skills.

Funeral Services

Unfortunately, the demand for funeral services remains constant.

Waste Management

Garbage collection and waste disposal are necessary services, making waste management companies recession-resistant.

Repair and Maintenance Services

Businesses providing home and vehicle repair services stay in demand as people opt to repair instead of replacing assets during economic hardships.

Debt Collection and Bankruptcy Services

Economic downturns lead to increased debt and bankruptcy filings, creating demand for related services.

Public Transportation

Public transport remains vital for commuting, even during times of reduced discretionary spending.

Essential Services

Plumbing, electrical, and HVAC repair businesses address critical needs in homes and businesses, maintaining demand.

Security Services

Demand for security services can increase during recessions as individuals and businesses seek asset protection.

Small Affordable Luxuries

People tend to treat themselves to small, affordable pleasures even during tough times, reducing spending but not eliminating it.

Thes above businesses are considered “recession-proof” because they provide essential services that people cannot do without. If you work in one of these sectors and offer quality services at competitive rates, you’re likely to weather the economic storm successfully.

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