Unemployment tends to spike during recessions, and the effects ripple far beyond Wall Street and into the daily finances of ordinary households.
The Bureau of Labor Statistics reported in its April 2026 Employment Situation release on May 8 that the unemployment rate sits at 4.3%, with payroll growth slowing to 115,000 in April and involuntary part-time employment climbing by 445,000 to 4.9 million.
Fidelity Investments published a guide outlining 10 specific strategies that workers and households can use to protect their careers and income before a downturn.
The recommendations come from Andy Alvarez, a certified financial planner who serves as vice president and branch leader at Fidelity, and are outlined in the firm’s recession-preparation guide.
The strategies are split into two categories: four moves focused on making your career more resilient, and six moves designed to shore up your household cash flow before a downturn forces costly reactive decisions.
Fidelity outlines 4 career moves to survive a recession
The first half of Fidelity’s playbook targets career resilience, and Alvarez emphasized that the time to act is before a downturn forces your hand. The firm’s recession-proof guide lays out four moves every worker can make regardless of their industry or experience level.
“Most individuals throughout their career are building skill sets that are incredibly transferable…If I were in an industry that I felt was shrinking, I would try to understand where my skills might transfer to,” said Andy Alvarez, CFP®, vice president and branch leader at Fidelity Investments.
Build and sustain your professional network
Alvarez told Fidelity that staying connected with former colleagues, industry contacts, and community members can surface job opportunities that never reach public listings. He stressed that networking is most effective when it is a consistent, mutual relationship rather than a last-resort scramble after a layoff, the guide noted.
1. Keep learning
Workshops, online certifications, and continuing education courses can help workers separate themselves from a crowded field of job seekers when hiring freezes lift, Alvarez told Fidelity. Sharing those new credentials with a manager can also strengthen job security within your current role and open pathways to promotions, the guide indicated.
2. Diversify your skill set
Alvarez recommended volunteering, shadowing colleagues in other departments, or taking on cross-functional projects that broaden your resume and qualify you for roles you might not have previously considered, according to the Fidelity guide.
3. Think about recession-proof jobs
Workers who feel their current industry is contracting can explore roles in sectors that provide essential services, which tend to retain demand even during downturns. Alvarez told Fidelity that most professionals build transferable skills throughout their careers and often underestimate how portable those abilities truly are.
Fidelity says protecting your cash flow requires six deliberate steps
The second half of Fidelity’s guide shifts from career strategy to household finances, and the advice addresses spending, savings, and alternative income streams that can cushion the blow of a job loss or pay reduction.
1. Analyze your expenses
Alvarez recommended separating essential costs from discretionary spending and identifying which categories, such as entertainment, subscriptions, and clothing, could be eliminated or downgraded quickly if your income changes, the Fidelity guide stated.
2. Check on your emergency savings
Fidelity’s guide recommended building a reserve covering three to six months of essential expenses in an easily accessible account. Alvarez told the firm that workers living paycheck to paycheck need to start thinking about saving additional cash immediately, even if it means cutting habits like frequent restaurant meals or unused subscriptions, the guide noted.
3. Sell your unused things
Offloading unused belongings through online resale platforms can generate quick cash with relatively little effort, and the guide recommended researching which platforms offer the best returns for different item categories.
4. Rent out your things
Spare rooms, garage storage space, parking spots, bicycles, and power tools can all produce passive income when rented to neighbors or through sharing platforms, the Fidelity guide indicated. Alvarez cautioned workers to be honest about what they are willing to offer for the extra income and to set clear boundaries.
5. Consider a side gig
Alvarez told Fidelity that the most sustainable supplemental work is something that aligns with personal interests and does not feel like a second job.
He offered his own example of coaching tennis lessons as a way to earn extra income while doing something enjoyable, and the firm’s guide recommended exploring gig work that could also help develop marketable new skills.
5. Know where to get money in a pinch
Many employer retirement plans offer hardship loans or withdrawals that participants may not realize they can access, Alvarez told Fidelity.
I see a lot of people who are fixated on shoveling lots and lots of money into their retirement accounts. I’m all for saving for retirement, but sometimes it’s too much of a good thing. You should be saving elsewhere so you can adjust when life happens
He acknowledged that tax rules and restrictions apply. Hardship withdrawals from 401(k)s typically trigger a 10% early withdrawal penalty for those under 59½, plus federal and state income tax on the distribution, according to the IRS.
However, he stressed that understanding all available options in advance can prevent rushed, costly decisions during a financial emergency.
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Fidelity’s recession playbook puts preparation ahead of panic
The common thread across all 10 of Fidelity’s strategies is that preparation consistently outperforms reaction, and the window for proactive steps narrows as labor market conditions weaken. The firm’s framework is built on deliberate, incremental action taken before a crisis arrives.
As signs of strain begin to appear across the labor market, Fidelity’s message reflects a broader shift in how workers think about financial stability and employment security. The firm’s recession framework focuses less on predicting the economy and more on preparing for uncertainty before it disrupts daily life.
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From strengthening professional relationships to identifying backup income sources, the strategies emphasize flexibility and adaptability during periods of economic pressure. The guidance also highlights how vulnerable many households remain even after years of wage growth and low unemployment.
Rising living costs, limited savings, and dependence on a steady paycheck leave little room for error if layoffs increase or work hours shrink. Fidelity’s recommendations acknowledge that reality by encouraging workers to evaluate both their careers and household finances before conditions worsen.
Rather than presenting a single solution, the playbook outlines a series of practical steps to reduce financial disruption during a downturn. The guiding theme throughout the guide is preparation: workers who understand their options in advance are often better positioned to navigate economic instability than those forced to make decisions under immediate pressure.
Related: Fidelity warns Americans on housing, mortgage risk
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