Job loss anxiety is hitting nearly half of American workers

$ Nearly half of Americans fear losing their job study says

$ Workers become counterproductive through overwork

$ Experts call it "layoff anxiety"

Nearly half of all Americans are now worried about losing their jobs, fueling what medical professionals are calling “layoff anxiety,” according to a poll by the Indeed Hiring Lab.

The concern is long-standing. In just the first five months of 2025, U.S. employers reported nearly 700,000 job cuts — an 80% increase compared to the same period last year.

In New Jersey alone, there has been nearly 8,000 layoffs through July 3. Some companies with high layoffs include Panera Bread, Amazon, and Bahama Breeze.

As a result, employees across industries are feeling the emotional toll. Job security worries are pushing people to overwork in counterproductive ways, leading to faster burnout, increased anxiety and heightened stress.

The impact spreads beyond the workplace

Ashley Morolla, director of The Center for Trauma Services at CarePlus NJ, says the psychological effects of job insecurity span beyond the office.

“Job insecurity creates an added worry over having a job, an income, and staying financially stable,” Morolla explained. “An employee’s mood might be different, they might be more irritable at work, as well as unpleasant and concerned.”

The phenomenon has created a vicious cycle where workers, desperate to prove their value, often become less productive through overwork, irritability and stress.

Warning signs to watch for

Mental health professionals urge people to recognize when layoff anxiety is affecting their well-being. Someone might have trouble sleeping due to work-related stress, neglect personal relationships, self-care and feel dread towards the future.

Managing stress

For individuals grappling with layoff anxiety, Morolla recommends several practical approaches:

• Setting boundaries around work hours
• Avoiding social media and negative posts
• Maintaining a regular sleep schedule
• Exercising regularly
• Staying connected with friends and family

Addressing layoff anxiety before it becomes overwhelming, for both individual well-being and workplace productivity, will help to ease the 46% of Americans facing these worries.

Indeed said the poll was conducted in May by The Harris Poll on behalf of Indeed.

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