“Another recession could be just around the corner, but at least for now, malls and restaurants are full again, traffic is terrible and everything is back to normal.”

That’s what I wrote back in August, 2007. Since then, time-bomb mortgages have been blowing up all over the country, foreclosures have become a national crisis, major U.S. financial institutions are recoiling from billions of dollars in losses and just last week stock markets around the entire world plummeted. What a difference six months can make.

Now there is talk of a recession, jobs are being lost and Uncle Sam wants to give everybody more money, so we can spend ourselves out of the abyss once again. What is the current outlook? What does it mean for designers? Are we going to lose our jobs? Well, if the past is any guide, maybe there is still some good news out there, either way.

I have been a graphic designer and illustrator since 1979 and have worked through three recessions during that time. What I have noticed is that if you manage to keep your job, you are kept quite busy doing your own work and the work of your buddies that were just laid off. At one job, I was told to “keep my head low and look busy.” But if you do get laid-off, and can’t find full-time work, I think you will find that there are greater opportunities to find design work as a freelancer during tough times.

I was always a risk taker and toward the end of the 1980-83 recession, I actually quit my agency job to start freelancing. My business immediately boomed. There was so much work in South Florida at the time that I thought everyone should just quit their jobs. (I was young…irrational exuberance.) I also remember working in Boston through the 1991-92 recession, scoring my highest yearly incomes to date. But, my freelance business tanked in 1994 as the economy recovered. I was newly married, broke and needed to get a full-time job. Go figure. Even during the 2001-2 recession, still working in Boston, I had a steady stream of work as a part-time freelancer.

What I have noticed is that during hard economic times, companies tend to cut workers because of receding demand for their products or services. The stronger companies can ride out the storm, but the weaker ones must shed workers or go bankrupt. Overall, businesses and consumers do not want to spend money, so they trim costs wherever possible. This is good for freelance artists and small studios because during these times, business would rather hire a per-project contractor than pay salary and benefits to a full-time artist, who may be idle half the time. If artists can find enough of these companies giving out contract work, he or she can do very well.

Simply stated, an economy is the relationship between people producing, exchanging and consuming goods and services. Even when the economy contracts, people still need “stuff”–just not as much as they did during good times. There is always work that needs to be done, and I think the healthcare and education sectors will still do well because these industries provide services that people need regardless of the economic environment. You are obviously better off finding on-site work near larger metro areas simply because there more people, but with website exposure and social networking sites pulling in jobs for you, you may be able to produce design work without even leaving your home. Today, all of my freelance work is done online and most of my clients I have never met in person. I’m not saying it’s easy, but desire, diligence and necessity will help you accomplish things you would never have been able to achieve at your old job.

I heard it said that there is always a “bull market” somewhere. Even during The Great Depression, some people actually made millions, if not decent salaries. In the 1930’s there was a boom in entertainment because everyone was so depressed. They needed an escape. Artists who worked for Warner Brothers, Disney or MGM studios in Hollywood did pretty well. I don’t think it will ever get that bad, and everybody’s financial situation is unique, but I believe that those who will succeed are the ones who will look for and take advantage of every opportunity.

Maybe “hard times” are what some of us need…economic conditions that will force us to start-up the next Pentagram or Pushpin design studio.

I just hope I’m ready to take my own advice.

This entry was posted on Tuesday, January 29th, 2008 at 1:52 pm and is filed under Design Careers. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.