The latest figures show there are now more than two million people unemployed in the UK, the most for more than a decade, with more job losses seemingly announced almost every day.
However, all is not lost. While economic problems look likely to be around for the next few years, there are a number of ways to survive what's coming.
The first thing to do is make sure you have cut all the costs you can, then check your emergency fund and insurance policies. Once that is done, you might want to consider a move to a job where you are far more likely to survive and possibly flourish.
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What to look for
There some careers which tailor themselves to the economic times. When house prices are booming it's a great time to be an estate agent - your commissions go up while the work you do stays the same. However, the same can't be said in a downturn.
Currently house prices are falling at record rates and very few people are selling their homes. So estate agents are not only getting less money for each deal they make, they are getting fewer sales through each month as well.
At the other end of the scale, pawn brokers and others are optimistic. When times are good, fewer people need ready access to cash and not as many people are looking for bargains. But as times get tough, the number of people both selling possessions and looking for bargains rises. The National Pawnbrokers Association reported 75% of its members saw an increase in business in the first half of 2008.
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Evergreens
As well as jobs linked to economic success or failure, there is a string of industries where success has little to do with the state of the economy.
Stock market investors call companies specialising in these industries "defensive stocks" - and buy them up whenever times get tough. Drugs companies, tobacco firms, supermarkets, utilities providers (water, phone, gas and electricity), defence and oil companies are where investors pile their money to wait out a recession.
And a similar principle can be used to look for safer jobs. People need dentists, plumbers and IT technicians regardless of the state of the economy. Because when things go wrong they have to be fixed - this is not discretionary spending.
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The safest career choices
To find out which careers and sectors are offering the safest jobs right now, MSN Money spoke with Tim Cook, managing director of the UK's largest recruitment firm - Hays. Of course, no job is guaranteed, but these are his choices for finding the most resilient roles and sectors in a downturn, along with his reasons for these selections.
1. Public services
Teachers, doctors, nurses and healthcare professionals can all benefit from a more secure job environment, which is affected by government expenditure rather than the economy at large. Skill shortages in the public services sector will always fuel demand for high-calibre professionals.
2. Social housing
With the majority of Housing Associations nearing completion of their targets, demand for social housing professionals continues to accelerate across a number of disciplines. The type of role sought varies considerably: accountants, procurement specialists and construction workers, as well as the more traditional housing roles, such as maintenance and rent collection.
3. Oil and gas
World reliance on oil and gas makes this a resilient sector for a range of professionals. Demand for commercial staff, reservoir engineers and design and maintenance engineering professionals is buoyant. Newly-qualified accountants are also competing hard to work in the sector, which is not surprising for an industry that offers first-class pay and benefits packages as well as excellent career opportunities.
4. Risk and compliance
Risk and compliance recruitment has surged as corporate governance continues to dominate the business agenda. The days of deregulation are over and the government, along with the FSA, has already specified that all financial services institutions will be more closely scrutinised.
5. Internal audit
In times of financial uncertainty, the internal auditor has an even more important role to play and this has never been recognised more than during a downturn. Job opportunities have naturally been affected, but this remains an in-demand profession. In light of lessons learned during the financial crisis, it is likely that internal auditors will top the list of desirables when recruitment levels start to pick up again.
6. Insurance
Hays is seeing a sharp increase in the demand for senior-level candidates in the insurance sector. People typically look to increase and renew their policies in times of financial unrest. There is demand for all classes of underwriters and a strong requirement for sales account executives.
7. Credit control
Credit controllers will benefit in a downturn as people look to mitigate the risks of non-payment, late payments and the opening of new accounts. As companies seek to maintain a healthy cash flow, the role of the credit manager remains in the spotlight.
8. Purchasing
As organisations focus on cost management, experienced purchasing and procurement professionals are much sought after across both the public and private sectors as companies increasingly recognise the benefits of an effective purchasing team.
9. Nuclear energy
The government has recognised that nuclear energy will have to play a part in our future to ensure the UK can reduce carbon emissions and secure energy supplies. Those nuclear plants that have been decommissioned will now need to be reinstated and there is a severe shortage of engineers with the necessary skills to do this. Civil engineers will be able to transfer their skills to this industry and opportunities are likely to be rife in the future.
10. HR
There is a strong interim market for human resources (HR) professionals, especially in the fields of change management, employee relations, talent management and reward roles, as organisations review their career development and pay structures. Smaller businesses are rationalising their teams with a shift in favour of general rather than specialist HR skills.
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