Arguably recessions are terrible times to get jobs, so starting a startup might actually be a good thing. I've paid the bills with my startup and contract work, back when the tech industry was lackluster.

Contracting is not bad either. A company today might freeze hiring expecting things to get worse in 6 months. Nobody wants to fire, for economic, legal, and emotional reasons. So people are much more willing to outsource work, even at higher prices.