Anxious workers hit with ‘perfect storm’ of job insecurity

With the wave of recent layoffs and the rate of finding a new job at its lowest point since the pandemic, it’s little wonder employees are starting the new year feeling shaky about work life.
In fact, 4 in 5 workers fear losing their jobs this year, according to a survey of 1,115 employees in the U.S. by MyPerfectResume. The survey revealed that 76% anticipate more layoffs this year, while 63% expect more business closures vs. 2024 and 90% fear a recession could be on the way.
The impact extends beyond job concerns. More than half the workforce believes burnout will worsen in 2025, driven by job insecurity (43%), increased workloads (29%) and deteriorating work-life balance (23%). It all makes for a stubborn cycle in which fear of becoming jobless leads to overwork, which, in turn, exacerbates burnout and stress.
The phenomenon has led to what’s been dubbed “The Great Stay,” a growing reluctance among the workforce to switch jobs amid widespread anxiety about layoffs, burnout and economic instability.
“We’re seeing a perfect storm for workforce instability,” said Tim Glowa, founder and CEO of HR Brain, an HR solutions platform. The decline in job security, combined with an aging workforce and a spike in competition for talent, makes for a host of challenges for employers, he explains. As the median age of workers in the U.S. reaches 42 vs. 39 in 2000 — and even higher in some sectors — companies face the dual challenge of retaining anxious employees while prepping for a demographic reset.
It is not a mindset limited to the rank and file. In fact, the toll is even more evident among management. Brad Smith, chief science officer at HR support platform meQuilibrium, noted that burnout among supervisors has reached a crisis point, with bosses showing more than twice the level of burnout and a four times greater degree of stress than staff, according to his firm’s research.
At the same time, workers who report to managers who support their mental wellness have 56% lower levels of work stress and 58% less burnout, while they are four and a half times more likely to stay in their jobs.
Amy Mosher, chief people officer at isolved, an HR and payroll services company, believes addressing these challenges requires a nuanced approach. “Finding a way to address employee burnout and stress issues will not be a one-size-fits-all all solution,” she said. “HR teams must first identify the root of these challenges to develop effective support strategies.”
Ben Eubanks, CEO of Lighthouse Research & Advisory, agrees that understanding employees on a deeper level is essential. “For someone to feel supported by their employer, they must first be understood by their employer,” he said. “That understanding goes beyond job title or pay rate. Do we know what makes people tick? Do we know what kind of work brings them joy?”
Among strategies recommended by workplace experts:
Invest in career development. With 6 in 10 workers planning to upskill this year, organizations should prioritize learning opportunities. As Justin Marcus, CEO of Big 4 Talent, an employee acquisition platform, suggests: “If it’s a possibility for an employer to offer some equity or profit interest, that could also motivate employees to stay.”
Focus on manager support. Given meQuilibrium’s findings on the impact of management support, organizations should invest in developing resilient leaders who can effectively support their teams’ mental well-being — something that’s especially crucial as managers show significantly higher levels of stress and burnout than their teams.
Prioritize transparency. “Clear, open and honest communication about the company is important,” Glowa said. “Regular updates, and no surprises, can help combat anxiety and stress about potential downturns” — something that’s particularly vital given that three-quarters of workers anticipate more layoffs.
That level of communication is essential not only for calming the anxieties of workers but also for protecting the company’s well-being.
“In the Glassdoor era, how organizations treat employees lives forever online,” Glowa said. “With 4 in 5 employees fearing layoffs and countless negative comments posted on LinkedIn, clear, open and honest communication about the company is more important than ever.”