A new Indeed survey shows growing concern among American workers about job stability and the direction of the labor market. According to the results, 52% of respondents believe their employer is preparing for a recession. At the same time, 46% are worried about being laid off within the next year, and 48% of those concerned think they are very or extremely likely to be affected.
Fear of layoffs is preventing many from making career moves. Half of respondents said they are staying in their current job because they worry that taking a new role would put them at greater risk of being laid off. 22% said their current fear of being laid off is worse than it was during the height of the COVID-19 pandemic, while 43% said it feels about the same.
Economic Uncertainty Keeps Workers in Place
The most common reasons for layoff anxiety include rising prices affecting company performance (48%), knowing someone who has been laid off (39%), and frequent news reports about a possible recession (38%).
Other concerns include tariffs (37%) and government layoffs or funding cuts (32%). 34% said their company has already had at least one round of layoffs.
While job security remains a top concern, 53% said they feel confident they could find a new job in under three months. Even so, 40% said they are unhappy in their current role but feel unable to leave due to economic uncertainty.
Another 40% said they have applied for jobs they are overqualified for because of pressure from the job market, and 54% of those applicants said they were rejected for being overqualified.
42% of respondents said they have applied for freelance or contract work because full-time roles are limited. That number rises to 48% among those who are currently unemployed.
AI Adoption and Job Search Stress Add to the Pressure
The workplace is also changing in other ways. 53% said their company has staff specifically focused on implementing AI. Meanwhile, 51% said they have considered relocating for better job opportunities, and 52% said they have taken on a side hustle to help cover expenses.
The job search itself is taking a toll on well-being. Half of all respondents reported negative mental health impacts tied to their job search.
As fears of recession, layoffs, and industry disruption grow, workers are left weighing stability against ambition in a labor market that feels increasingly unpredictable.
