1 in 3 Americans Are Worried About Layoffs in 2025 — 3 Ways To Prepare Your Finances
Written by
Andrew Lisa
Edited by
Gabrielle Olya
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Layoff anxiety is a fact of life in the modern American workplace.
A new study from the small business lending company Clarify Capital found that one in three Americans are anxious about the prospect of losing their jobs in 2025. The same research showed that plenty of them have good reason to worry — many are underprepared or flat-out unprepared to endure even a modest period of joblessness.
Nothing can be gained from stressing out over the thought of losing your job. Instead, be ready for the worst by preparing for it now.
Save Enough Money To Buy Yourself a Few Months
One of the study’s silver linings is that nearly one in three people — 31% — had more than six months’ savings in the bank. That’s better than the three to six months of emergency savings that conventional personal finance wisdom recommends — and another 23% report having that amount stashed in savings.
That means more than half used their current income to build a financial cushion at least as big as standard-setters like Chase deem sufficient, which is something to which all workers should aspire.
The best remedy for layoff anxiety is cash on hand in case of job loss — but many are rolling the dice. Around one in five of the study’s respondents could last just one to three months if they got laid off. Another 14% have less than a month’s worth of savings, and 13% have nothing at all.
Develop Alternative Income Streams
Even the most robust emergency fund is finite, and a goose that keeps on laying is better than even a big pile of eggs. The COVID-19 pandemic proved that those with multiple income streams are far more resilient during periods of prolonged joblessness than people who rely on a single employer — and Forbes argues that in the modern economy, secondary income sources are no longer a luxury, but a necessity.
Nearly one in three of the study’s respondents would take a 10% to 20% pay cut to avoid being laid off. Presuming they would even have that option, side income could plug some or all of that gap, particularly when backed up by a healthy emergency fund.
Eliminate Debt While You’re Still Collecting a Check
Debt has a way of making bad financial situations much worse, and creditors are not something you want following you into a period of joblessness. To counter layoff anxiety — and to prepare you to weather the storm if your boss gives you the worst possible news — focus on debt reduction now, while you still have money coming in.
About a quarter of the people surveyed cited debt as one of their chief concerns regarding the possibility of a layoff, because it attacks from two sides: Unemployment forces many to take on new debt while making them fall behind on the loans and credit card bills they already have.
It’s a one-two punch that even the mightiest emergency funds can’t fend off for long, so pay down what you owe while you can.
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