Layoff worries plague nearly half of U.S. workers
One tip to ease the anxiety just a bit: Let employees in on company decisions as much as possible.
Even though the current 3.6 percent U.S. unemployment rate is at a record low, nearly half of the country’s workers are still worried they are going to lose their jobs, according to CareerArc’s 2019 CareerArc Layoff Anxiety Study.
The Harris Poll on behalf of CareerArc surveyed 2,204 U.S. adults, of whom 1,061 were employed, and found that 48 percent of those working experience layoff anxiety.
Three factors are fueling this anxiety: fear of a pending recession (34 percent), rumors around the office (32 percent) and a recent round of layoffs at the workplace (30 percent).
While just over half of employed Americans (53 percent) feel somewhat or very prepared for a potential layoff, many workers don’t – though it often depends on their circumstances.
Renters (37 percent) are less likely to feel prepared than homeowners (58 percent); those without children (57 percent) are more likely to feel prepared than those with children (47 percent).
Those with a college degree or higher (64 percent) are more likely to feel prepared than those with some college (48 percent) or a high school degree or less (43 percent); and unmarried workers (46 percent) are less likely to feel prepared than those who are married (60 percent).
“Since layoff anxiety is so prevalent in the U.S. workforce, it makes sense for companies to manage and address these worries head-on,” the authors write. “Company leaders and HR professionals can take steps to both assuage unnecessary fear among employees and prepare for unexpected changes in the business environment.”
CareerArc recommends that employers manage layoff anxiety first by communicating with employees.
“Much of the fuel behind layoff anxiety comes from the fear of the unknown,” the authors write. “Thus, it’s helpful to let employees in on company decisions as much as possible—especially during times of mergers and acquisitions, management changes or shifts in business focus.”
Employers should also create a layoff plan and consider engaging an outplacement service for exiting workers to help them land new jobs more quickly.
“This will allow you to retain a positive relationship with your former employees as well as forestall lawsuits and protect your employer brand,” the authors write. “The best time to put an outplacement plan in place is when your company is not going through a reduction in force, so that if and when the time comes, you’ll be able to put your focus on the affected employees.”
Other key survey findings include:
– 61 percent of young Americans ages 18 to 34 suffer from layoff anxiety as compared to 41 percent of adults ages 35 and above.
– 54 percent of women surveyed don’t feel prepared for a layoff as compared to 41 percent of men.
– 39 percent of employed women who suffer from layoff anxiety cite fear of pending recession as the number-one cause of their layoff anxiety versus 29 percent of men in the same group.
– Men are more likely than women to have ever been laid off or terminated – 45 percent of men have lost their jobs as compared to 36 percent of women
– 64 percent of Americans with college degrees or higher have never been laid off as compared to 48 percent of Americans with some college and 47 percent of those with a high school degree or less.
– Younger, less experienced workers may face more challenges finding or switching jobs during a recession. Gen Z and millennial employees — 23 percent of those aged 18 to 34 and 19 percent of those aged 35 to 44 — were about twice as likely to experience difficulty in finding or switching jobs during the Great Recession, compared to those ages 45 to 54 (11 percent) and 55 to 64 (9 percent).
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