Is an economic downturn bad for the field of employer branding?
Lower economic growth
The global economy declined since the last few months of 2015. Just when we thought we were going to recover, the OECD announced lower expected economic growth. Since November the consumer confidence, the confidence of purchasing managers and the stock market dropped. Companies that have been around a long time, sometimes for over 100 years, disappeared. Particularly the retail sector has suffered intensely: consumers are tempted by continuing low economic growth to save rather than spend their money. The money they do spend, on clothes for example, happen to be bought more and more online. As a result, retail stores and their employees become obsolete. Purchases of durable goods, such as cars, televisions and washing machines, aren't bought in large numbers. And when they are bought, European consumers often prefer these products from Asia, particularly China: there simple cheaper. Spending on a global level this makes no difference, but revenue for European companies is thus back. Economic growth, as indicated by the OECD, will indeed be lower.