Growing Your Career in a Down Economy: How Care, Emotional Intelligence, and Leadership Create Opportunity When Scarcity Takes Hold
Economic downturns often trigger a scarcity mindset. When people perceive fewer opportunities, they begin to conserve energy, limit risk-taking, and narrow their sense of possibility. Yet careers do not stop growing in a down economy. What stops growing is our belief that growth is still possible. A growing body of research across leadership, emotional intelligence, and organizational psychology shows that people thrive when they feel cared for, trusted, and emotionally supported , especially during periods of uncertainty. These conditions can be intentionally created, even when the external environment feels unstable.
Scarcity Shrinks Vision, So Leaders Must Intentionally Expand It
During uncertain times, leaders often default to protective behaviors such as tightening control, centralizing decisions, and reducing delegation. Research on family businesses shows that first-generation leaders tend to rely more heavily on autocratic styles during periods of pressure, emphasizing directing, rigid work environments, and unconditional obedience (Goyal et al., 2023). These behaviors are classic scarcity responses: when resources feel limited, leaders grip harder.
However, the same study found that organizations perform significantly better when leadership shifts toward transformational behaviors — especially in the next generation of leadership. Transformational leadership emphasizes delegation, trust, guidance, and vision, and it explained 75.7% of the variance in business performance among second-generation leaders (Goyal et al., 2023). This suggests that expanding vision is not just a leadership preference; it is a performance strategy.
To expand vision during a down economy, leaders can:
Schedule regular conversations that focus on long-term goals rather than only short-term threats.
Ask open-ended questions that encourage possibility, such as “What opportunities might be emerging that we have not yet explored?”
Invite team members to participate in decision-making so that ownership is shared rather than centralized.
Communicate the organization’s purpose and direction clearly so people can anchor themselves in something larger than the current moment.
Share examples of past resilience to remind people that uncertainty is survivable and often transformative.
A Caring Climate Strengthens Performance, Even When Resources Are Tight
A three-year longitudinal study of apparel workers found that a psychological climate for caring (defined as perceptions of trust, fairness, respect, safety, and management support ) significantly predicted higher self-reported productivity and work quality (Weziak-Bialowolska et al., 2020). Importantly, the relationship was bi-directional: a caring climate improved performance, and strong performance reinforced a caring climate. This creates a virtuous cycle that is especially valuable during economic downturns.
The study also found that a caring climate strengthened work engagement, which is a known predictor of resilience and sustained performance. In contrast, environments lacking care were associated with lower engagement and weaker outcomes.
To cultivate a caring climate that counteracts scarcity, individuals and leaders can:
Express appreciation for specific contributions so people understand the impact of their work.
Check in with colleagues about their workload and well-being in a sincere and consistent way.
Share information transparently to reduce fear and prevent people from filling in the gaps with worst-case scenarios.
Celebrate small wins to reinforce progress and momentum.
Offer help before it is requested to demonstrate that support is available even when resources feel limited.
Emotional Intelligence Fuels Happiness, and Happiness Fuels Resilience
Emotional intelligence (EI) is one of the strongest predictors of happiness, and happiness is closely tied to resilience which is a critical asset during economic uncertainty. A recent study examining EI sub-dimensions found that all four components (self-emotion appraisal, others’ emotion appraisal, regulation of emotions, and use of emotions) positively predicted happiness, but the use of emotions was the strongest predictor (Kohli et al., 2025).
This means that individuals who can harness their emotions to guide thinking, decision-making, and motivation are more likely to maintain well-being and effectiveness during challenging times.
To strengthen emotional intelligence and build resilience, individuals can:
Name their emotions with specificity so they can understand what they are actually experiencing.
Pause before reacting to challenging situations and ask themselves what their emotions are trying to communicate.
Reflect on how their emotional state influences their decisions and relationships.
Practice reframing difficult emotions as sources of information rather than signs of weakness.
Seek feedback from trusted colleagues or mentors to better understand how their emotional responses affect others.
Scarcity Mindset Is Contagious, but So Is Growth Mindset
Emotions spread quickly within teams and organizations. Research on psychological climate shows that employees’ perceptions of their environment shape their engagement, productivity, and satisfaction (Weziak-Bialowolska et al., 2020). When people feel anxious or threatened, others often absorb that energy. However, optimism, steadiness, and encouragement spread just as quickly.
To model a growth mindset that interrupts scarcity, individuals can:
Speak openly about challenges while also naming potential solutions.
Acknowledge uncertainty without exaggerating it or assuming the worst.
Offer encouragement to colleagues who doubt their abilities or worry about the future.
Share stories of past resilience to normalize struggle and reinforce capability.
Demonstrate curiosity by asking questions that invite exploration rather than shutting down ideas.
Growth in a Down Economy Is Built on Relationships, Not Resources
Across all three studies, one theme is clear: people thrive when they feel connected, supported, and emotionally safe. These conditions matter more than the external economy. When individuals invest in relationships, they create networks of trust that sustain growth even when resources are limited.
To strengthen relationships during a down economy, individuals can:
Reconnect with colleagues or mentors they have not spoken to recently and initiate conversations without an agenda.
Offer support or expertise to others as a way of building mutual trust.
Ask people about their goals and explore ways to help them move forward.
Share their own aspirations so others know how to support them in return.
Follow up consistently so relationships deepen rather than remain transactional.
Reflection
A down economy does not eliminate the possibility of growth. It simply requires a different approach. When people lead with care, strengthen their emotional intelligence, and invest in relationships, they create the conditions for growth even when the external environment feels constrained. Scarcity mindset tells us to protect what we have. Growth mindset reminds us to invest in who we are becoming. Care-centered leadership shows us that we rise by lifting others.
A down economy can drain your emotional and cognitive “spoons,” making it harder to show up with clarity, generosity, and vision. That is exactly why small, intentional actions matter. Instead of trying to overhaul your mindset all at once, you can rebuild your sense of possibility one spoon at a time.
7-Day Spoon Challenge:
Choose one behavior from each section above and practice it intentionally for the next seven days. Notice how your mindset shifts when you act from care rather than fear. Notice how others respond when you expand possibility instead of contracting around uncertainty. Growth begins with one small, consistent choice at a time.
Day 1: One Spoon for Expanding Vision
Choose one conversation today where you intentionally shift from short-term fear to long-term possibility. Use one spoon to ask a question like, “What might be possible here that we haven’t considered yet?”
Day 2: One Spoon for Creating a Caring Climate
Use one spoon to offer a specific, sincere appreciation to someone. Tell them exactly what they did and why it mattered.
Day 3: One Spoon for Emotional Intelligence
Spend one spoon naming your emotions with precision. Write down what you’re feeling and what that emotion is trying to tell you.
Day 4: One Spoon for Modeling Growth Mindset
Use one spoon to reframe a challenge. Say out loud or write down, “This is difficult, and here is one thing I can try next.”
Day 5: One Spoon for Strengthening Relationships
Use one spoon to reconnect with someone you value. Send a short message that simply says, “Thinking of you and grateful for you.”
Day 6: One Spoon for Supporting Others
Spend one spoon offering help before it is requested. Ask someone, “What would make things easier for you today?”
Day 7: One Spoon for Reflection
Use one spoon to reflect on the week. Notice where you felt more grounded, more connected, or more hopeful.
References (APA 7th Edition)
Goyal, L., Kiran, R., & Bose, S. C. (2023). An empirical investigation of the influence of leadership styles and strategic decision-making on business performance: A generational ownership perspective. Current Psychology, 43, 5472–5489. https://doi.org/10.1007/s12144-023-04705-y
Kohli, M. K., Nisa, S., & Siraj, S. (2025). Unravelling the emotional intelligence (EI) and happiness connect: Exploring the role of EI sub-dimensions in one’s happiness. SDMIMD Journal of Management, 16(1), 105–120.
Weziak-Bialowolska, D., Bialowolski, P., Leon, C., Koosed, T., & McNeely, E. (2020). Psychological climate for caring and work outcomes: A virtuous cycle. International Journal of Environmental Research and Public Health, 17(19), 7035. https://doi.org/10.3390/ijerph17197035
Disclaimer: This post incorporates insights from research that is currently in progress as part of my doctoral dissertation. All findings should be considered preliminary and subject to refinement as the study advances.