What can graduates do in today's economic downturn?The days of low interest rates are gone, and while interest rates are not rising anymore, who knows when the days of low rates will return? If you are a recent graduate or about to graduate next year, you might have found yourself having trouble finding your dream job amidst the current economic slowdown. It is a reality that economic cycles (natural fluctuations in economic activity that an economy experiences over time) come and go, so let’s dive a little deeper.You might have read that EY just delayed their graduate program’s start date due to slower growth (not downturn, mind you) - it’s that bad. Still, no need to panic - you just need to shift your priorities and be more creative, whether that's landing a role or adding value in one way or another.While the EY episode might tell you something about the changing world of management consulting and the aftermath of EY’s failed spin-off (read more here) of their consulting division let's get back to the macro level: central banks around the world have aggressively hiked interest rates in response to the spiralling inflation post the pandemic, to levels that have long not been seen. You might remember the term stagflation from your economics lectures. There is light at the end of the tunnel though with inflation now below central banks’ targets meaning we should expect lower interest rates soon (and an effective impact a bit later as changes in monetary place take some time to propagate) which will help revive the global economy.Stories that Led to Today's SituationThe current economic landscape is shaped by a series of interconnected factors that have evolved over the last decade (yes, that far back):Low Interest Rates Post-2009In response to the 2008 global financial crisis, central banks lowered interest rates to historically low levels to stimulate growth and encourage investment after the financial system came close to a meltdown. This environment made borrowing cheaper, spurring consumer spending and business investment, which contributed to job creation and economic expansion.Quantitative Easing (QE)Alongside low interest rates, central banks engaged in quantitative easing—buying government securities like bonds to inject additional liquidity into the economy. At first, this strategy was effective in stabilizing financial markets and promoting recovery. However, over time, it leads to inflated asset prices and an overheating economy.High InflationAs the economy recovered, the combination of easy monetary policy and increased demand resulted in rising inflation. Supply chain disruptions during the COVID-19 pandemic, combined with consumer demand remaining high, deepened this inflationary pressure, leaving central banks no option but to hike up interest rates.Geopolitical TensionsWe are still not there yet. The Russia-Ukraine war has had a significant impact on energy prices and global supply chains. Sanctions on Russia and disruptions in energy supply have contributed to rising costs, further fuelling inflation and creating uncertainty in markets. Prices have now gone back almost to pre-war levels.Pandemic Relief MeasuresDuring the COVID-19 pandemic, governments worldwide implemented substantial fiscal stimulus measures, often referred to as "helicopter money." While these measures provided immediate relief to individuals and businesses, they also added to the overall money supply, further contributing to inflationary pressures.Labor Market DynamicsThe combination of stimulus, changing workforce preferences, and shifting economic conditions has resulted in a tight labour market, characterized by higher demand for workers. This situation has created an “employers’ market”.It’s worth noting though, that these trends and events have also created opportunities, namely for trading desks – stable markets do not offer any opportunities for trading. Top HFT trader Jane Street specifically has achieved extraordinary results in recent years, all attributed to the higher volatility created. Performance across the board is similar with many desks having blockbuster periods of time.RisksAt the moment, there are some risks to the world economy. Is one of them big/permanent enough to tip over the world economy?Staggering U.S. Debt LevelsThe United States faces a significant (and growing) debt burden which poses risks for economic stability and in fact for the whole world. High levels of debt can limit the government's ability to respond to economic downturns and may lead to higher interest rates, reducing investment and consumer spending. However, as the world's reserve currency, they can -at least in theory- borrow as much as they wantPolitical UncertaintyThe upcoming U.S. elections create an uncertainty that can dampen business confidence. Companies may hesitate to invest or expand in an unpredictable political environment, leading to reduced demand and slower economic growth (the two competing political camps have very different ideas on economic policy). Luckily, it is only a couple of weeks till the election.GeopoliticsSeveral intelligence assessments in the West forecast a direct military conflict between NATO and the Russia/China axis in the coming years. This raises concerns about regional and even global security, not to mention the military spending started recently which shows no signs of slowing down. Similarly, China’s aggressive military stance heightens fears of potential conflicts in the APAC region, which could disrupt global trade and economic conditions and trigger a larger confrontation (which China can ill afford with its reliance on export and consumption).Potential Catalysts for Crises:PandemicsThe COVID-19 pandemic revealed how quickly global health crises can disrupt economies. These are so-called “black swan” events, but they tend to happen. Future pandemics could lead to renewed lockdowns, supply chain disruptions, and a decline in consumer confidence.Natural Disasters and Global WarmingIncreasingly severe weather events and natural disasters driven by climate change can and probably will have significant economic impact. These events can damage infrastructure, disrupt supply chains, and displace populations, leading to economic instability. Commodity prices are not spared either: droughts are becoming increasingly common and dealing with them is far from easy.Technological DisruptionThe rise of commercial, generally available AI and automation products and technologies threaten to displace trivial jobs in sectors like finance and technology. This shift could lead to increased unemployment and social unrest if workers are unable to find new jobs. There is a lot of research going into quantum computing as well, which could change the world as we know it: add agent automation and AGI to that list.OptionsSo, what can you do to weather the storm? Here is some advice that should pay off even in the short termEmbrace Networking – you will be surprised by how many jobs will never be advertised, so try to grow your network.Cold Networking on LinkedIn: Reach out to professionals in your desired field. LinkedIn can be powerful. Personalize connection requests by mentioning anything you have incommon (like mutual interests for instance) and make the ask. Remember to stay humble, people might take their time to reply or not reply at all.Start a side-hustleMight sound obvious, but it's not. Start small: no need to build the next Facebook, and you will still gain valuable experience. See if you have any kind of hobbies or special interests that could be monetized - whatever that might be.Prepare for the GMAT and save for your MBANot everyone is lucky to start working in the industry straight after undergrad. If you are unlucky enough to graduate into this type of market, you might want to consider getting an MBA soon and therefore rebranding yourself (having another shot at recruitment per say). Hopefully the market improves by then, however the time to start positioning yourself and into the right direction is now. Target Smaller FirmsTry to look beyond the household names – smaller firms can offer exciting job opportunities as well and decision-makers might be more approachable.Hot Sectors and Industries of TodayTry to look beyond the traditional entry points of banking and consulting and consider other industries as well. Some sectors that will look good on your resume includeGreen Technology, ESG: As sustainability becomes more important, sectors focused on renewable energy, electric vehicles, and sustainable products are growing.Artificial Intelligence: AI is growing and its applications are expanding across all industries, including real estate development, finance, and logistics.Healthcare and Biotech: The pandemic underscored the importance of health innovation, making these fields ripe for growth.Use Your Free Time: If you have free time at hand, use it wisely. Think about enhancing your CV while also having a bit of fun. Volunteer, or even pick up a new hobby (this will indirectly boost your chances of professional success). Learning to code, even at a basic level, will help you later. Take courses in data analysis or machine learning that can be completed in a couple of weeks. Online platforms like Codecademy, Coursera, or free resources like freeCodeCamp offer structured courses. Yes, you get what you pay for, but they are still a better use of time than videos all day. Important: spend more time than you otherwise would choosing an instructor or course you like. There are many out there, and the bell curve applies here too: only about 20% is actually worth subscribing to - the rest is (really) trash for a multiple of reasons. You want to choose the one with the least number of issues.Job Search advice – waiting and getting rejections is not the most amazing experience, but do not just try more of the same.Use your university’s resources (and use them well): contact career services and contact them regularly, it is likely that there will be openings available as well as additional resources. They are free to use.Caution with Job Boards: You might think LinkedIn is where all the jobs are. WRONG. In fact, the number of fake adverts on LinkedIn make applying on there almost pointless and not worth your while in the current climate. Yes, there are still decent jobs there, but the ROI is not as great as the general popularity of the platform as a whole would indicate. Many are outdated as well and you can only see the posting date once clicked on one. Instead, explore alternative job boards like Indeed or Glassdoor.Attend industry events: I think this is one of the best bets right now. Yes, it’s a high-effort endeavour and you can’t do it from the comfort of your home. You need to: find one, get to the location of the event and back, present yourself professionally (meaning grooming and dressing well too), and be good at networking. Being good at networking, contrary to popular belief, is not rocket science. You don’t need to have amazing social skills. You need to be: articulate, professional and know how to maximize your time while there (collecting as many business cards as you can).Recruitment Agencies: Low-effort, but can be a bit hit and miss. It might be good to be on their books, but a part of the industry has taken a downturn lately. From my experience, it’s basically a waste of time in today’s market unless it’s a reputable or well-known head hunter/agency.Graduating into a challenging market may feel daunting, especially for those who have not previously experienced it. However, by actively networking, focusing on high-growth sectors, improving skills, and approaching job searching strategically, graduates can position themselves for success. Balance your short-term search with long-term career development which will help you in adapting to this part of the economic cycle.Acquire new skills, network, and think about the implications of this period. You can set yourself up for the future not by spending when the market is flourishing and saving when the market is tanking, but the other way around. Save during the good times and invest during the bad times. If you think about it, it’s kind of counter-intuitive but it makes a lot of sense and is how many successful business ventures are started.So that’s my advice: let go of your ego and keep trying. Everyone gets rejected. Yes, getting 100s of automated rejections is kind of depressing and will make you feel like a loser, but you need to maintain perspective. For those who lived through the 2010-2020 period of booming growth, will know the exact opposite feeling too: being on top of the world. Just remember it’s a cycle and instead focus on self-care and personal growth, things that you CAN control. Remember, persistence often leads to success, and the right opportunity will come along, even if it is after the 200th application (the employer won’t know how many times you had been rejected, unless you tell them, either).You can also find Canary Wharfian AI resume generator to bulletproof a resume here as well as a cover letter generator service. There is no reason why you should not use AI to your advantage and level the playing field – employers do it, too. “Live by the sword die by the sword” — If screened by AI, then apply by AI.