The global economy is currently facing uncertainty, with some experts predicting an impending recession. Potential Fall 2024 intake students and their families are left wondering if the current economic climate will impact their education and future prospects. However, the severity and duration of the potential recession remain unclear. In this article, we will assess the threat of a recession, examine previous recessions and their durations, and explore how education can be a strategy for Indian students planning to study in the US for the Fall/Spring 2024 intake to sail through the current economic scenario.
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Recent Global Events Pointing to a Recession
Indian students planning to study in the US have been worried about the following factors.
- COVID-19 Aftermath: The global economy is still recovering from the pandemic's impact, with some industries facing severe setbacks. Although many countries have made strides towards recovery, the looming threat of new variants and potential outbreaks could destabilize the economy once more.
- Inflation: Rising inflation rates in many countries, including the US, have increased the cost of living, leading to reduced consumer spending and slowed economic growth.
- Global Political Tensions: Geopolitical tensions between major world powers, especially Russia's invasion of Ukraine, have led to trade wars, sanctions, and reduced international cooperation, further exacerbating economic instability.
- Supply Chain Disruptions: A combination of natural disasters, labour shortages, and manufacturing bottlenecks have disrupted global supply chains, causing an economic downturn in many countries.
Is the Threat of Recession Real?
Considering all the above factors, the threat of a recession is a topic of much debate among economists. Although these factors could lead to a slowdown or recession, it is difficult to predict their exact impact on education. The possibility of a full-blown recession remains uncertain, and it could very well turn out to be a temporary economic slowdown.
Recently, while speaking with some of our alumni who took help from Yocket Premium to get into the top 100 ranked MS in Computer Science program in the US, we found that the current job market is a bloodbath. Less than 20% of students have been able to secure an internship which used to be over 65% for the previous batches, even before graduating.
So, it is quite okay if prospective students and their parents feel nervous about going abroad. However, we’ll understand why this is the best time for you to plan your education abroad in 2024 in the next section.
Past Recessions: Duration and Strategies to Sail Through
Historically, recessions have varied in duration and severity. For example, the 2008 Global Financial Crisis lasted for 18 months, while the 2001 recession persisted for only eight months. In both instances, people adopted various strategies to navigate the economic downturn, such as pursuing further education, focusing on skill development, and exploring alternative career paths.
During recessions, education has consistently been a popular choice for individuals seeking to improve their employability and enhance their skill sets. Higher education institutions typically witness an increase in enrollments during economic downturns, as individuals invest in their future prospects.
Education as a Strategy to Beat the Recession
For Indian students planning to study in the US in Fall 2024, education can serve as one of the key strategies for success to combat a potential recession. By the time these students graduate in 2026, the economy would have recovered, providing them with a more stable job market and better career opportunities.
Furthermore, pursuing education during a recession or slowdown allows students to focus on acquiring skills in industries less affected by the downturn, such as technology, healthcare, and renewable energy. This strategy ensures that they remain competitive in the job market and are better equipped to navigate economic turbulence.
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In fact, according to a report by Redseer, over 1.8 million Indian students would be studying abroad in 2024, a massive spike from 770,000 students who went in 2019, and only around 540,000 students who went abroad in 2016. On the Yocket platform too, we have seen an increase in interest in going abroad in 2024 by over 20% compared to last year.
While the threat of a recession looms, its extent and severity remain uncertain. Indian students planning to study in the US in Fall 2024 should focus on the potential benefits of pursuing education during such times. Historically, people have used education as a strategy to sail through economic downturns, and students graduating in 2026 are likely to emerge into a recovered economy with improved career prospects.
By adopting an optimistic approach and focusing on skill development, Indian students can turn potential challenges into opportunities, ensuring a successful academic journey and a brighter future in the face of economic uncertainty.