Compliance jobs likely to become even more critical in the event of an economic downturn

There’s far from consensus on whether the U.S. will experience an economic recession this year (yes, and it’ll be a long one; yes, but it’ll be a short one; no, the U.S. will make a narrow escape). But one thing is for certain — compliance functions will be spared the harshest effects. Probably.

The recession chorus has been growing louder for months, spurred by a combination of continued inflation and interest rate hikes, a cooling job market and Wall Street declines. Despite these fears, compliance, risk and governance professionals likely have little cause for concern for their own jobs, according to economic and compliance analysts.

In fact, compliance professionals may become even more important to their organizations, for example, in the event of widespread job loss, analysts said. Fitch Ratings has projected the unemployment rate, which sat at 3.5% in December 2022, will rise to 4.7% by the end of 2023 and peak at 5.3% in 2024.

“This could potentially lead to increased risks and a greater likelihood of non-compliance with laws and regulations,” said Lakshmi Raj, co-CEO of Replicon, a time-tracking platform. [Read More @ Corporate Compliance Insights]