Worker confidence just hit a record low, and it’s not hard to see why. Even though the stock market has bounced back from its early-year tumble, employees across the country are feeling increasingly anxious about their job security.
That unease isn’t unfounded: companies like Procter & Gamble and Microsoft have both announced layoffs affecting thousands of workers, citing reduced consumer spending, according to reporting from MarketWatch.
Entry-level employees are feeling the pressure
The job market has been cooling for several years now. Although unemployment remained 4.2% last month, Glassdoor’s May 2025 Employee Confidence Index showed that entry-level workers are especially pessimistic.
The report found that just 43.4% of early-career workers believe their company’s business outlook will improve in the next six months, marking the lowest confidence levels since Glassdoor began tracking the metric in 2016.
Daniel Zhao, Glassdoor’s lead economist, told MarketWatch that “economic uncertainty and economic anxiety are compounding to create an uneasy morass” for employees.
He added that although the worst-case tariff outcomes may have been avoided, many companies remain hesitant to grow their workforce or increase investments due to ongoing volatility.
Even High Earners Are Worried
Data from the New York Federal Reserve’s May 2025 Survey of Consumer Expectations echoed these concerns.
The survey found that the average perceived probability of higher unemployment a year from now was 40.8% — well above the 12-month average of 37.7%.
Interestingly, the workers most likely to fear future job loss were those with college degrees or annual incomes over $100,000.
Meanwhile, a separate May 2025 workforce survey conducted by Indeed revealed that more than half of employees believe their companies are actively preparing for a recession.
In that same poll, 46% of respondents expressed concerns about being laid off within the next year. More than 1 in 5 workers said they now fear job loss more than they did during the height of the COVID-19 pandemic.
As a result, 40% of workers surveyed by Indeed admitted they are staying in jobs they dislike due to economic uncertainty or are afraid to move in the current environment.
Start building your war chest today
Financial planners responding to these trends, including those cited in MarketWatch’s May 2025 reporting, urge Americans to save enough to cover at least six months of essential expenses.
That’s because the average length of unemployment has increased to more than five months.
- First, calculate your monthly essentials — housing, utilities, groceries, insurance, transportation, and debt payments.
- Remove non-essentials like streaming subscriptions and dining out to find your baseline.
- Then automate transfers to a high-yield savings account, even if it’s just $50 per paycheck.
Cut expenses while you still have choices
Waiting until you’re unemployed to cut costs puts you behind. Instead, proactively review recurring expenses.
- Cancel unused subscriptions or memberships.
- Shop for better rates on insurance or utilities.
- Consider refinancing your mortgage or selling a high-payment car.
Focusing on housing, transportation and food can dramatically extend your emergency fund’s runway.
Update your professional brand
Priya Rathod, a career trends expert at Indeed, advises updating your LinkedIn profile and resume before a crisis hits.
She recommends documenting your latest skills, certifications, and accomplishments now.
- Tailor your resume for targeted roles.
- Request recommendations while you’re still employed.
- Set up job alerts for relevant roles — even if you’re not actively searching.
Rathod encourages workers to “prepare rather than panic,” emphasizing the value of readiness.
Decode unemployment benefits before you need them
Unemployment insurance policies vary by state, and understanding the system ahead of time can save you stress later.
Know your eligibility, benefit amounts, documentation requirements, and waiting periods in advance.
- Store recent pay stubs, tax returns, and other essential documents in one place.
- Some states use your highest-earning quarter to determine benefits — plan accordingly.
Squeeze every benefit from your current job
If you have an FSA, use your funds for eligible health expenses. Take care of dental, vision, or elective procedures while still insured.
- Contribute enough to your 401(k) to capture any employer match — free money you’ll lose if laid off.
- Research COBRA continuation coverage to understand post-employment health insurance costs.
- Some companies also offer outplacement services or severance — know your rights before you need them.
Develop income streams beyond your paycheck
Relying entirely on a full-time job is riskier than ever. Zhao noted that industries like healthcare may offer more stability, and some companies actively seek freelancers or contract workers.
- Explore side gigs using your existing skills.
- Monetize hobbies or offer consulting on a small scale.
- Earning even $500 a month from a side hustle can ease stress during a job transition.
Strengthen your network authentically
Rathod told MarketWatch that many people avoid networking because it feels transactional.
But she emphasizes that maintaining genuine, ongoing relationships is one of the best ways to stay visible in your industry.
- Share articles, comment on posts, and reach out to former colleagues.
- Join industry groups or attend virtual events.
- Offer help where you can — people remember who supported them.
Financial preparation creates options
Preparation is key in the face of record-low worker confidence and persistent economic volatility.
Taking action now gives you control. Saving more, spending less, building your brand, and staying connected to your network ensures you’re ready, whatever happens next.
As Zhao put it, many businesses are still hesitant to hire, but that doesn’t mean you have to feel stuck. These small, strategic moves give you a financial cushion and peace of mind, both now and if layoffs hit your doorstep.
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