MW Layoff anxiety is soaring. Here's how you can 'prepare rather than panic.'
By Venessa Wong
The stock market may have recovered from recent downturns, but employee confidence just hit a new low
Even after the stock market recovered from sharp declines earlier this year, employee confidence hit a record low in a survey by the job review site Glassdoor conducted in May. Glassdoor has been running the survey, which asks workers about the six-month business outlook for their employers, since 2016. Entry-level employees in particular reported low confidence.
While the unemployment rate was unchanged at 4.2% last month, "economic uncertainty and economic anxiety are compounding to create an uneasy morass for employees, driving employee confidence lower and lower," according to Glassdoor's report. These feelings aren't off-base: Job creation is likely to be depressed until the trade wars are resolved, MarketWatch previously reported. Big companies including Procter & Gamble $(PG)$ and Microsoft $(MSFT)$ have said they plan to lay off thousands of workers in response to consumers cutting their spending.
"Worker sentiment has dropped faster than the hard economic data has," Glassdoor's Lead Economist, Daniel Zhao, told MarketWatch. "Even as the worst case for tariffs seems to have been avoided, employees are still feeling the brunt of uncertainty, especially compounded with the cumulative burden of several years of a slowing job market."
The recent stock market rebound may "provide limited comfort," Zhao added, "but many businesses are still extremely hesitant to expand hiring and investment plans amid the ongoing economic uncertainty, meaning fewer opportunities for job seekers to find the right job for them."
More on this: People are more worried about their jobs now than they were during the pandemic when everything closed
Other research is revealing similar declines in employee sentiment. In the latest New York Federal Reserve survey of consumer expectations, the average expected probability that the unemployment rate will be higher a year from now, 40.8% in May, remained well above the trailing 12-month average of 37.7%. Workers with a college degree or higher, and those who earn $100,000 or more were the most uncertain.
In a survey conducted by job site Indeed in mid-May, just over half of workers said their employers were preparing for a recession, and 46% were concerned about layoffs in the next year. More than 1 in 5 even said their fear of being laid off is worse than it was during the height of the pandemic.
As a result of these concerns, 40% workers told Indeed they are staying in jobs they are unhappy in, as economic uncertainty has made them afraid to leave.
Read more: It's a terrible time to quit your job - except in these 3 cases
Priya Rathod, a career trends expert at Indeed, told MarketWatch, "I really encourage people to prepare rather than panic, or sit in that unhappiness. Think about what you can do to improve things for yourself."
Job experts shared these tips on what actions people can take if they are extremely worried that they will be laid off:
1. Have a layoff plan
Have a plan in place in case you are laid off, whether that means building up an emergency fund, getting your resume updated now, or deepening connections with your network, Zhao said.
In light of the economic uncertainty that has come to define 2025, financial planners are recommending people have enough emergency savings to cover at least six months of expenses this year, as the average length of unemployment has increased to more than five months.
Related: Don't just ride out 2025 financial uncertainty - adapt to it. These 7 strategies can help.
Workers who haven't been in the job market for a while can also proactively identify companies and industries that are still hiring people with their skill set, so they know where to focus their search if they do lose their jobs, rather than starting from scratch during what may be an emotionally difficult period of joblessness. Though hiring has slowed in some areas, others are still thirsty for new workers.
"Generally speaking, acyclical industries like healthcare can be a good place to look for job seekers prioritizing job security," Zhao added. "Even if you aren't a medical professional, healthcare providers need workers in a variety of roles like IT, marketing and more."
2. Upskill
As an estimated 70% of job skills will evolve by 2030, "knowing which skills are in demand can help people looking to land a new job this year to stand out to hiring managers, 50% of whom explicitly use skills to find qualified candidates," according to a statement from job site LinkedIn.If you're preparing for a move within your company or even to a different industry, understanding the specific skill gaps you need to bridge is critical, including any certifications that would make you a stronger candidate, Rathod said.If you're not sure where to start, LinkedIn publishes reports about jobs on the rise. The top three for 2025 were: AI engineer, AI consultant and physical therapist. The top skills on the rise this year included AI literacy, conflict mitigation and process optimization, according to LinkedIn.Some companies have free training resources; others that are not able to offer large raises right now may offer financial support for learning instead, Rathod said. If you're employed, "Tap into what your company is giving you access to right now to see what courses you can take through your company, what kind of tuition reimbursement they're open to, or what kind of learning stipends they're open to."
3. Take care of your network
The word "networking" may feel "icky" to some who go on to neglect this critical career-building skill, Rathod said, but it can really just mean staying in touch with people, including when you are still employed. Don't think of it as extracting or taking from them when you need help, but also remember to offer your help and knowledge too. This can be as simple as maintaining a presence on social media where you share information that you find useful and interesting, which keeps you on people's radars, she said.
"When you keep your network really strong and robust, people are going to come to you with opportunities," said Rathod.
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-Venessa Wong
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(END) Dow Jones Newswires
June 10, 2025 05:31 ET (09:31 GMT)
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