Is a recession coming in 2026?

While a recession is not officially declared or guaranteed for 2026, economic warning signs and expert predictions have raised concerns about a potential downturn.

Key Indicators and Expert Warnings

• US Housing and Economic Drag: Prominent economist Gary Shilling warned in May 2026 of a potential U.S. recession hitting later in the year, pointing to a "frozen" housing market and other weakening economic indicators.
• Labor Market Softness: In Canada, economic uncertainty has been highlighted by labor market shifts, including roughly 100,000 job losses reported early in the year, alongside structural disruptions from rapid AI integration.

How to Prepare

Because predicting the exact start of a recession is notoriously difficult, financial experts recommend taking proactive steps rather than waiting for official calls:

1. Build an Emergency Fund: Aim for 3 to 6 months of living expenses in a liquid, high-yield account.
2. Pay Down High-Interest Debt: Prioritize variable-rate debts (like credit cards) that become harder to manage if income drops.
3. Assess Job Security: Keep your resume updated and focus on building adaptable skills, especially as technology and AI continue to shift workforce demands.