Stable Job vs Bigger Paycheck: Which Should You Choose in a Recession?
Written by
Martin Dasko
Edited by
Amber Barkley
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In an economy that feels unsteady, making money reliably might feel more important than ever — but employees are worried their jobs are unsteady.
According to a recent report from MyPerfectResume, 81% of American employees are concerned about losing their jobs this year, and 76% believe that layoffs will go up in 2025. Employees are hesitant to switch jobs, as well, a trend the research noted is known as “The Great Stay.”
With 92% of respondents mentioning recession fears in 2025, it’s understandable why many may want to remain in their current roles. This means that employees may choose to stick with a stable job that they’re confident they won’t be laid off from over accepting a higher-paying job that could be less stable in a possible recession.
Here’s a look at the idea of sticking with a stable job compared to pursuing a higher paycheck as concerns over a recession remain.
The Case for a Stable Job
There are two major benefits to sticking with a stable job that you’re confident you won’t get laid off from.
Stability Comes With a Sense of Security
Kraig Kleeman, an accomplished entrepreneur and founder of The New Workforce, noted that job stability comes with an emotional payoff.
He added, “In unpredictable times, that often outweighs the financial bump of a higher, yet unstable, paycheck. Especially when you’re juggling a mortgage, caring for a family or simply trying to get a decent night’s sleep, predictability holds real worth.”
If you have significant expenses and a family to support, you may not want to take on unnecessary risks, especially as fears of a recession loom.
“For some individuals, stability is much more important than increased upside,” said Robert R. Johnson, Ph.D., CFA, CAIA, professor of finance at Heider College of Business at Creighton University. “The stable job may be the wiser move if you’re providing for others, managing substantial debt or just prioritizing peace of mind.”
A reliable income will help you gain control of your finances and allow you to make long-term plans, since you don’t have to stress about a possible job loss during a recession. When the economy falls into a recession, it can be challenging to recover, especially if your industry is particularly sensitive to economic fluctuations.
A Stable Job Will Make Financial Planning Easier
“It’s better to have a stable job making less than a better-paying job with less stability,” said Melanie Musson, a finance expert with Clearsurance. “If your income is lower, you can live a more modest lifestyle, but you can still enjoy time with your friends and family, have vacations and save for your future.”
When a higher paycheck comes with job insecurity, it can be challenging to make long-term financial plans. The constant stress of worrying about losing your job can also be physically and emotionally draining, which may mean the additional funds aren’t worth it.
When To Chase the Bigger Paycheck
On the other side of the coin, there are also two occasions where it makes sense to chase a bigger paycheck even if there are concerns over a recession.
You Don’t Have Significant Financial Obligations
“That high-paying role might be a smart gamble if you’re just starting your career, don’t have obligations and are OK with taking risks,” Kleeman said. “Assuming you don’t get swept up in a layoff, it could fast-track your skills, boost your savings and unlock new opportunities.”
If you don’t have any major financial obligations or if you’re new in your career, you may want to fast-track your savings by going after the larger paycheck. This could enable you to establish a solid financial foundation for the future.
Your Industry Has Abundant Employment Opportunities
“Depending on your specialty, you could quickly find employment elsewhere if you lose your job,” Musson said. “In that case, a better-paying job with less stability may be a better option, because losing your job doesn’t have to mean you’ll spend a month unemployed.”
If your industry has abundant employment opportunities, even in a possible economic downturn, then you could benefit from taking the bigger paycheck, since you won’t have to worry about landing back on your feet after a layoff.
A Hybrid Approach If You’re Worried About a Recession
Kleeman pointed out that not enough people consider this third route, which is diversifying while staying grounded in a stable role. This building a side hustle and developing skills that make you lay-off resistant while keeping your secure job.
This would allow you to maximize your income while remaining prepared for a possible recession. However, it could also be more stressful, since you won’t have as much free time.
Making Your Decision
“My advice would be to go with your gut and try to make the decision based on your preferences and appetite for risk,” said Adem Selita, a financial professional and co-founder of The Debt Relief Company. “If you have fewer potential liabilities, you might want to consider a higher-paying job that is less stable. If you have sustained responsibilities, you might want to more heavily consider the job with more stability.”
Johnson agreed that the answer to this question is individual-specific. He said, “It’s all about how an individual is wired — that is, their willingness and ability to bear risk. And it is about both willingness and ability to bear risk.”
Ultimately, your decision between a stable job and a bigger paycheck will depend on your personal situation and your level of risk tolerance. For some, the bigger paycheck is always worth it, but for others, stability may be what they need at this stage in their lives.
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Sources
- MyPerfectResume, “4 Out of 5 Workers Fear Job Loss in 2025: The Great Stay Explained.”
- Kraig Kleeman, The New Workforce
- Robert R. Johnson, Creighton University
- Melanie Musson, Clearsurance
- Adem Selita, The Debt Relief Company
