Understanding Heightened Job Insecurity in Today’s Economy
In a national estimate of layoff totals thus far in 2024, companies have cut about 386,000 jobs in 2024. Although that total is slightly lower than it was this time last year, employees remain tense. 40% of workers say they’re saving more of their income in case they’re laid off. The increasing popularity of AI technology has only added to feelings of job insecurity, as 68% of workers believe AI will cause an increase in unemployment.
Another explanation for heightened job insecurity: Two-thirds of workers overestimate the current unemployment rate of 4.1%. In fact, 55% of workers believe unemployment is higher than it was four years ago — when the unemployment rate was 11.0% amid pandemic-era cutbacks.
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Gen Z workers rate their job security the lowest of any generation, with 57% reporting layoff anxiety, compared to just 16% of baby boomers.
Among all generations in the workforce, Gen Z employees, born from 1997 to 2012, feel the most pressure. Nearly three in five Gen Z workers (57%) reported anxiety about being laid off, and 88% are taking steps to prepare for layoffs. In fact, one out of every six Gen Z workers (16%) fully or mostly suspect they will be laid off by the end of 2024.
Their millennial peers, born from 1981 to 1996, trail closely behind, with 42% reporting layoff anxiety. If we zoom out to all generations, more than one-third of American workers (36%) feel layoff anxiety.
With rampant fears of job insecurity, more than nine in 10 workers (93%) said they’re willing to make sacrifices to keep their roles in the event of mass layoffs, according to our survey.
Among those who always work from home, (51%) said they would give up their remote work privileges to stay onboard.
In Conclusion
Heightened job insecurity is a pervasive issue across all generations in the workforce, fueled by economic uncertainties, the rise of AI technology, and misconceptions about unemployment rates. While layoffs in 2024 are slightly lower than the previous year, the fear of job loss remains deeply ingrained, especially among younger workers like Gen Z. As a result, many employees are taking proactive measures, such as increasing savings and regularly checking job listings, to prepare for potential layoffs. The willingness of workers to make significant sacrifices, like giving up remote work privileges, underscores the depth of their concern. Addressing these fears requires clear communication, support, and a reassessment of how companies can foster a sense of stability and security in an ever-evolving job market.
To discover how we can support you during times of heightened job insecurity, visit Percipio Workforce Solutions or call us at (816) 668-8853.
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About Jim Roy
CEO
Des Moines, IA
jim.roy@percipioworkforcesolutions.com
816-668-8853
Jim has 25 years of experience in the fields of staffing, recruiting, and human resources. After touring over 2,100 manufacturing and warehouse facilities in his career, Jim has developed workforce best practices that can be utilized to improve retention and reduce turnover. The staffing industry allowed Jim to learn many lessons in business, ranging from staff management to recruiting techniques and a healthy dose of acquisition activity. Jim earned his Bachelor’s Degree at the University of Wisconsin-Eau Claire and is the proud father of three girls.