Is Your Job Safe? How Inflation Is Impacting Hiring and Layoffs in 2025 — and What To Do About It

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Despite decent growth at the beginning of 2025, the job market is looking quite uncertain right now. New CPI data showed that inflation heated up at the start of the year, increasing by 3% in January from a year ago, higher than the 2.9% forecast.

Read More: Renting vs. Owning a Home: Which Will Be Cheaper in 2025?

And with layoffs making headlines and inflation creeping up, many people are wondering: Is my job safe?

So, what’s actually going on? And what can you do to protect yourself?

Companies Cut Costs During Inflation and That Means Layoffs

Inflation raises the cost of pretty much everything. So, when businesses are struggling with higher expenses, they must look for ways to save money. And unfortunately, one of the quickest and most straightforward ways to do so is by reducing payroll costs.

According to outplacement services firm Challenger, Gray and Christmas, U.S. employers announced 172,017 job cuts in February — a 245% increase from the month before. It’s also the highest monthly total since July 2020, when 262,649 cuts were announced. 

A big part of this workforce reduction comes from the federal government, where President Trump aims to shrink employment. Industries like tech, retail, and media also saw a good chunk of job cuts. 

Hiring Freezes 

If you’re looking for a new job, inflation might be making it tougher. Many companies that aren’t laying people off are simply not hiring. Job postings are down in certain sectors, and some businesses are only filling essential positions.

Remote work, once a major selling point, is also becoming harder to find as companies push employees back into offices to justify keeping commercial real estate. For example, companies like AT&T, Amazon, JPMorgan, and Toyota, are now all requiring employees to return to the office. 

Wages are Struggling To Keep Up With Rising Costs

Even if you do have job security, inflation is making it harder for wages to keep up with the rising cost of living. Many workers feel like they’re making less money, even if their paycheck hasn’t changed because everything from groceries to rent is eating up more of their income.

According to Resume Now’s latest 2025 Wage Reality Report, over 1,065 professionals say they’re experiencing a growing gap between wages and the cost of living. Seventy-three percent of respondents say they can’t afford anything beyond basic living expenses, and most of their concerns are regarding rising housing costs and increasing prices for everyday essentials. 

Is Your Job at Risk? Signs To Watch For

Here are some red flags to look out for if you’re worried that your job may be at risk in 2025: 

• Your company announces that it wants to cut costs. If the leadership at your company is talking about wanting to streamline their operations or improving efficiency, that means they might be getting ready to lay some people off. 
• Hiring freezes. If your company isn’t hiring or hasn’t been hiring for a while now, it could be a sign they’re bracing for tougher times.
• There’s been a sudden change in leadership. Changes in leadership or top management can often indicate a shift in strategy, including hiring. 
• Your workload is shrinking. If you’re not getting as many projects or assignments as you used to, it could mean that your position is no longer a priority and could become redundant. 

If you’re noticing any of these signs, it’s time to start planning ahead to protect yourself financially. 

What To Do If You’re Worried About Job Security

Even in a shaky job market, you can take steps to protect yourself. Here’s what to focus on:

Build an Emergency Fund

If you don’t have at least three to six months’ worth of living expenses saved, start putting away money now. Even setting aside a tiny amount each paycheck can help you build up a comfy cushion if you become unemployed. 

Make Yourself Indispensable at Work

The best way to survive layoffs is by becoming the person your company can’t afford to lose. This means you have an essential skill they need to keep their business running, whether that’s AI skills or project management skills. So, if you can, try to take on projects, show initiative, and develop skills that make you valuable. If layoffs do happen, being indispensable in the workplace could help you keep your job.

Start Job Hunting Before You’re Forced To

Even if you’re not actively looking, consider updating your resume and LinkedIn profile now so that if layoffs do happen, you won’t be scrambling to start from scratch. You can do so by setting up alerts on LinkedIn and networking with professionals in your industries so new opportunities can come to you. 

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