Labor Day is a celebration of the American worker, but this holiday, recent surveys show many workers are bracing for possible layoffs.
In July, the unemployment rate ticked up to 4.3%, and hiring slowed with the economy adding fewer jobs than expected. Meanwhile, some major companies — especially in the tech industry — have announced high-profile workforce reductions.
All these factors may be contributing to workers feeling they need to prepare for the worst.
In Buffalo, New York, Jasmine Main recently learned her position as a data analyst with Tesla had been eliminated.
“I first was like, in shock, and then all of a sudden just had a full mental breakdown,” she said. “I was like ‘oh my God, I’m like really out of a job.'”
That feeling of shock is what many other working Americans are trying to avoid with a discreet strategy dubbed “career cushioning.”
“Career cushioning is when an employee perceives that the organization might be going through some kind of economic turmoil,” said career expert Jasmine Escalera, “that layoffs might be coming down the line.”
Escalera, an author for LiveCareer, says steps to “cushion” your career may include:
- Updating your resume and cover letters
- Networking
- Upskilling or acquiring new skills
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“I think there’s been a lot of conversation about how AI is going to shift the workforce,” Escalera said, “and I think that’s kind of getting certain people, maybe in particular positions thinking about, ‘Is it possible that my role at this organization could become obsolete or change?'”
In the 2024 Layoff Anxiety Survey by MarketWatch Guides, 70% of workers reported they are taking steps to prepare for layoffs such as putting more money into savings or regularly browsing job listings.
The Federal Reserve Bank of New York found more than 28% of workers were searching for a job in July, the highest reading since 2014.
Even if you feel confident in your current role, Escalera recommends the same proactive steps for job growth within your company: a resume review, networking and upskilling.
“I always like to tell individuals stay ready, so you don’t have to get ready,” she said. “There’s a lot of things that can happen in an organization and organizations will make decisions that could potentially change the frame of your work, even if you’re going to stay in the company.”
If you have concerns about layoffs, Escalera says have an open conversation with your manager, “to ask how you can align your work to the most valuable kinds of tasks for the organization,” she said.
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