In my 20+ years of being a career counselor, I have not seen a job market quite like the present one. It used to be said that government jobs were some of the safest because the government rarely lets people go. But we recently had news of massive layoffs of federal workers and I anticipate that more layoffs in other sectors are on the horizon.
It’s no wonder that a recent Clarify Capital survey (clarifycapital.com/mass-layoffs) finds that 1 in 3 Americans are suffering from “layoff anxiety.” Younger workers in their 20s are reporting the most layoff anxiety (40%), presumably because layoffs tend to affect the newest and least-experienced hires. Those working in tech, education, finance, retail and even healthcare—another sector traditionally thought of as bulletproof—are experiencing the most layoff anxiety.
It’s natural to feel anxious about losing one’s job right now. The weather report for the work climate seems stormy and tempestuous. However, layoff anxiety can take an even darker turn for individuals who start ruminating and becoming clinically depressed and/or anxious.
Unfortunately, some might even start feeling so helpless and hopeless that the quality of their work suffers, ironically making them even more susceptible to layoffs. Others might react in a different, but similarly unproductive way: They start working frantically, hoping their overwork will protect them. But overwork can also lead to unhealthy levels of stress and burnout.
I’m not saying that layoff anxiety is unwarranted in this job market. However, free-floating anxiety often takes one into an abyss of hopelessness and rumination. I suggest the following ways of coping with layoff anxiety:
• When the gossip mill is running amuck, anything could be interpreted as a sign of imminent layoff. Completely neutral events like your boss showing up early or staying late could set rumors flying. However, do a reality check to assess if you are truly in danger. More accurate indicators of layoffs would be budget cuts, hiring freezes, cost-cutting talk, reduction in your responsibilities and being excluded from key meetings.
• Preparedness always helps. Think about what you might need for layoffs. For instance, if you do not have emergency savings, now would be a great time to start. Even highly qualified candidates might not land a job for six months. So six to 12 months’ worth of expenses would be a savings target to aim for. The Clarify Capital survey found that 27% of respondents say they are not financially prepared should they be laid off, with 13% stating they have zero savings. It’s not too late to start preparing. Preparing for the worst can actually make you feel more proactive and less anxious.
• Think about your Plan B—what might you do if you were laid off? Maybe you have always wanted to start your own business or go back to school.
• Take charge of your career. If appropriate, you could have a conversation with your bosses about your layoff fears and about your contributions to your company. Express how much you love your job and ask your bosses what their current pressing needs are. It is usually interpreted positively when you show you want to keep being a contributor. You might also gain valuable insight as to where you should be spending your energies.
• Know that you are not alone in this situation. Many are feeling the exact same anxiety. Instead of isolating yourself, seek support from friends, family. It is always a good idea to keep strong ties within your network so that you can stay current in industry trends and potential job opportunities.
As the saying goes, “You’re stronger than you think.” When layoff anxiety hits, reflect on the moments in your life when you have faced adversity and survived. These reminders of your strength will help counteract anxiety.
I hate to say it, but layoffs are inevitable in the best of times as well as the worst. However, you can do many things to not fall victim to layoff anxiety. In fact, the strategies I have suggested might even propel you to re-evaluate your life and create a better career path for yourself.
Anne Chan is a career consultant and licensed psychotherapist in California. Reach her at an*********@gm***.com © Anne Chan, 2025
