Dr. Gleb Tsipursky – The Office Whisperer
Nirit Cohen – WorkFutures
Angela Howard – Culture Expert
Drew Jones – Design & Innovation
Jonathan Price – CRE & Flex Expert
Financial anxiety — marked by wage stagnation, inflation, and rising living costs — is prompting workers to reconsider what they truly need from their employers. This reckoning extends far beyond job titles or pay: it reflects the psychological impact of continued economic uncertainty.
While headlines focus on layoffs, AI disruption, and market volatility, 79% of employees say they’re more worried about the economy now than they were a year ago. That anxiety is influencing how they work, what they prioritise, and whether they feel supported by their employers.
Economic anxiety is also tied to broader workplace concerns, including long-term resilience, growing demand for flexible work, and rising expectations around trust and open communication.
The traditional employee-employer relationship is being rewritten, and employers must respond with people-focused, emotionally intelligent strategies.
Leadership, communication, and daily management require a reset. Ultimately, organizations that prioritize trust, wellbeing, and transparency will be best positioned to retain talent and build stability in a time of continued uncertainty.
How Economic Pressure Changes Worker Expectations
According to Remote’s Workplace Pulse Survey, 79% of employees are more concerned about the nation’s economic direction than they were a year ago. This unease is affecting more than morale; it’s directly shaping job security fears and career decisions. A substantial 67% of employees fear for their current roles, 18% have already taken on a second job, and another 57% are considering it.
These concerns coincide with real signs of a faltering labor market.
In July 2025, the U.S. economy added just 73,000 jobs, while May and June totals were revised downward by 258,000, leaving average monthly employment gains at only 35,000 over the past three months — a steep drop from the 123,000 per month pace a year earlier. Meanwhile, the unemployment rate rose to 4.2%, and long-term joblessness climbed to its highest level since the pandemic, with 1.83 million Americans unemployed for 27 weeks or more. Only a handful of sectors — primarily health care and social assistance — showed net gains, while industries like manufacturing, professional services, and government experienced outright losses or stagnation
Furthermore, the Federal Reserve Bank* of St. Louis Economic Policy Uncertainty Index has been persistently elevated this year, driven by tariffs, inflation, and political decisions. This ongoing volatility has resulted in caution among consumers and employers alike, further stalling job growth.
Caption: The Federal Reserve Bank (FRED) Economic Policy Uncertainty Index indicates current levels of economic policy uncertainty.
This economic uncertainty is reshaping how employees view work and what they expect from employers. About one-third fear losing their jobs within five years, while preferences for remote (32%) and hybrid work (26%) continue to grow. Meanwhile, U.S. employee engagement has fallen to a decade low, with a mere 31% reporting they feel engaged.
Remote’s survey shows that although over half (53%) of employees prioritize higher pay or bonuses, their top employer priority is organizational stability. This is followed by transparent communication (40%), flexible hours and location (36%), career development (33%), and mental health support (28%).
More stories for you
A record 18% of employees already have a second job or have joined the gig economy, and more than half are considering one. Concerns about retirement savings (60%), layoffs (45%), and job relevance (44%) are driving this shift.
Bureau of Labor Statistics data shows that 5.4% of Americans — roughly 8.9 million people — now hold multiple jobs, the highest level ever recorded. This statistic reveals that side gigs have become financial lifelines for many workers.
This stress is also harming wellbeing. Research shows that job flexibility and security can help reduce stress and anxiety, but unpredictable schedules and low wages contribute to burnout, poor mental health, and financial instability. A MetLife study found health, productivity, and engagement dropped 5–7%. The American Psychological Association reports 54% of workers link job insecurity to stress and burnout, and 39% fear job loss within the year.
In today’s uncertain economy, having control over when and where to work gives employees a crucial sense of balance, helping them manage pressure, stay focused, support their families, and create stability on their terms.
Trust and Transparency Are Essential to Improving Employee Support
Tate Hackert, President of ZayZoon, has highlighted that employees juggling bills often bring that stress to work. Over 60% of HR leaders agree that financial worries harm performance, and 61% of stressed employees say it reduces their productivity.
Ricoh North America’s Workplace Fulfillment Gap Index shows that fewer than half of employees believe their leaders effectively connect financial stress to overall wellbeing, highlighting a persistent disconnect.
This gap is further reflected in the mismatch between employee needs and employer support: nearly 70% of workers report moderate to high financial anxiety, yet only 17% feel adequately supported, and just 18% receive regular updates on economic conditions from leadership.
This lack of clear and consistent communication exacerbates feelings of distrust and disengagement among employees.
Employers who invest in financial wellness programs see tangible benefits, including higher productivity, reduced absenteeism, and stronger engagement. While perceptions of leadership support remain low, efforts have improved since a decade ago, when only 25% of companies offered financial planning tools. Today, almost 60% provide budgeting assistance and debt coaching to employees.
Employers must prioritize transparent, consistent communication about financial wellness programs to bridge this divide. They should provide clear information about available resources, how to access them, and explain how this support relates to employee wellbeing.
How Employers Can Strengthen Worker Resilience
Companies that respond with understanding, transparency, and clear planning are far better positioned to support their people during times of financial uncertainty.
In a recent webinar attended by Allwork.Space, Alan Bradshaw, Founder and CEO of the Psychology Business Incubator, and Marc Kirby, an Emotional Wellbeing Coach and Trainer, emphasized that in times of economic instability, effective leadership must go beyond strategy to actively reduce and prevent workplace stress.
One useful framework is the U.K.’s Health and Safety Executive (HSE) Stress Management Standards, which identify six key factors influencing workplace stress: demands, autonomy, support, relationships, role clarity, and change. Bradshaw highlights that economic uncertainty intensifies pressure on the “change” factor, which in turn affects all the others.
Yet organizational frameworks alone are not enough to meet the emotional and psychological needs of today’s workforce.
As Bradshaw explains, while the HSE standards offer a solid structural approach, they often miss the nuances of interpersonal dynamics, particularly when supporting neurodiverse employees. These gaps led to the creation of the Management Competency Framework, which shifts focus from systems to people. Its accompanying tools emphasize day-to-day leadership behaviors such as approachability, emotional intelligence, and availability.
These interpersonal qualities only work when applied consistently, with a sincere and sustained commitment to alleviating stress at its source.
While structured frameworks provide valuable guidance, their success ultimately depends on how leaders show up in everyday interactions. This is where emotional intelligence becomes indispensable.
Kirby underscores that emotional intelligence is central. Leaders must first develop self-awareness, recognizing how their own emotions influence their behavior. That awareness then allows them to better identify and respond to the emotional states of others.
Creating psychological safety is also essential. Without it, the stress-management competencies cannot take root. This responsibility becomes even more critical in remote and hybrid environments, where signs of stress are harder to detect. Managers need to be proactive, empathetic, and committed to checking in regularly with remote employees.
To translate these principles into action, Bradshaw points to Wellness Action Plans (WAPs) as a practical tool for managing staff stress. WAPs serve as an agreement between manager and employee to define how best to respond if stress or health issues begin to impact work.
These can be integrated into training programs, coaching sessions, and leadership development initiatives to make stress management a genuine, active priority.
While personal tools such as WAPs support one-on-one connections, broader company-wide strategies are equally vital. Employees need regular, transparent updates on company performance and broader economic conditions. Consistent, open dialogue is essential, as is tangible investment in mental health support, flexible schedules, and fair compensation. Organizations should also prioritize career development and financial wellness programs.
Bringing these strategies together highlights a new leadership model — one that is proactive, supportive, and people-focused. Ultimately, workers are no longer just following instructions — they expect partnership.
When leaders offer clear communication, practical tools, empathy, and autonomy, the result is greater trust, stability, and resilience. Managers equipped with the right training and frameworks (such as WAPs and the Management Competency Framework) can make a measurable difference in how teams respond to pressure.
In uncertain times, strengthening resilience not only benefits employees, but it’s also essential for long-term business health.
* In the U.S., there are numerous resources available to employers via the American Institute of Stress. The U.S. Surgeon General has also released a framework for workplace mental health and wellbeing, emphasizing the importance of psychological health in the workplace.
