Presented with a world of uncertainties, the fear of unemployment is on the rise. Americans are fearful of job losses at levels that match pandemic period concerns, and that says a lot about the state of the workplace today. In this new era of work, instead of being excited by the technological advances being made and the new innovations taking shape, workers are confronted by the reality of being entirely replaceable and disposable.
AI, automation, and other technological marvels are not solely to blame for the rising unemployment fears in 2025. The global economic, political, and social climates have dunked workers into ice-cold waters that have left them chilled and entirely pessimistic for the future, and something needs to be done about this change. While HR leaders can’t magic these all-encompassing global changes away, what they can do is take a closer look at the situation and address the job market fears in 2025.
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The Fear of Unemployment Reaches Levels Witnessed During the Pandemic
How do we know that the fear of layoffs is on the rise? A single look at the markets today would be sufficient, but new data from the Federal Reserve Bank of New York’s latest Survey of Consumer Expectations showed that consumers set the probability of the nation’s jobless rate being higher in a year at 44%. This is the highest the number has been since April 2020, when the pandemic disrupted work and lives on an unprecedented global scale.
Additionally, the fear of unemployment wasn’t just presented for the job market as a whole. Survey respondents set the mean perceived probability of losing their jobs in the next year at 15.7%, the highest it has been since March 2024. This increase was higher among respondents who had an annual household income below $50,000.
There is a general air of unease across the country, where employees are experiencing almost pandemic-level job fears that are compounded by their daily experiences.
Why Are the Job Market Fears so High in 2025?
The fear of unemployment may appear extremely reasonable considering the number of reports we’ve seen about layoffs this year, but the job market remains strong. New reports suggest that U.S. employers added 228,000 jobs in March, which was twice as high as the previous month. The unemployment rate did go up slightly from 4.1% to 4.2% in that time, but for now, it does appear that there is work to be found.
So what are the reasons for the unemployment anxiety in 2025? We can think of a few reasons.
- Rising number of layoffs across industries that signal a shift in work
- Employers admit to looking for AI and automation tools to replace their labor force
- The threat of tariffs suggests that organizations will have to make budget cuts in order to continue making a progress
- Fear of inflation and a recession where many roles may be terminated and organizations shut down
- Sweeping job cuts at the federal level that are leaving workers with niche experiences out of work
- The return-to-work mandates that come with the threat of job loss if ignored
- The end of DEI trends and protections that allowed workers to be more optimistic about their chances of getting hired into otherwise homogeneous organizations
How Does Unemployment Anxiety Affect Employers
Workers who participated in the unemployment expectations survey have an undoubtedly pessimistic view of their prospects, but any organization can conduct a survey among their own workers and see similar results. This unemployment anxiety in 2025 is not an “other people” problem that’s affecting other organizations—it is likely affecting yours, too.
Employees who are experiencing such pandemic-level job fears are not likely to think about quitting at the moment, but they are going to be stressed and distracted at work. Many may succumb to the stress and be forced to take time off from the stress; others who are constantly on the edge may respond poorly to colleagues and disrupt the work environments—the consequences are endless.
Although employers may feel secure in their workforce capabilities for now, they could see large numbers of quitting workers the second matters settle down, much like the Great Resignation era following the pandemic. It’s time for HR leaders to take matters into their own hands and address the problem head-on.
How Can HR Leaders Address the Rising Fear of Unemployment Among Workers?
The job market fears in 2025 may or may not die down as time progresses, but HR leaders have a duty towards their workers to set their minds at ease. The fear of unemployment today can leave a lasting problem that will have to be fixed tomorrow, so the best solution is to get a head start on the problem right now.
There are a few things HR leaders can do to address the fear of unemployment.
- Talk to workers about the organization’s short-term and long-term goals so employees are aware of what is going on
- Explain the organization’s strategy with regard to the tariffs and how the leaders plan to deal with the issues, so employers are not taken off guard by sudden changes
- Provide mental health support and other opportunities for employees to process their anxiety
- Invest in team-building initiatives and other communal events that bring employees together
- Set up a straightforward channel of communication where employee concerns can be directed and addressed
- Use AI as a support tool and not as a replacement for workers
- Address workplace conflicts quickly and efficiently to bring down the tension
- Provide financial wellness support and other forms of assistance employees might need at such trying times
- Encourage employees to join resources group and make use of the other benefits available to them
HR’s role in crisis management has always been one of utmost importance, and the situation is no different right now. The job market fears among workers need to be addressed promptly to ensure that organizations can maximize productivity and continue to make progress undeterred.
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