As the U.S. economy navigates uncertain terrain, a wave of unease is sweeping through the workforce. Many Americans are increasingly worried about unemployment, layoffs, and the possibility of a recession as 2025 unfolds, according to recent surveys and expert insights.
A new report from the employment platform Indeed highlights this mounting anxiety. The survey, conducted in early March 2025, found that 62% of U.S. workers are concerned about losing their jobs within the next year—a sharp rise from 48% just six months ago. The data reflects a growing pessimism about the job market, fueled by corporate downsizing announcements, economic slowdown signals, and persistent inflation pressures.
"People are feeling the pinch," said Sarah Jensen, an economist at Indeed. "Even though the unemployment rate remains relatively low at 4.2%, the steady drumbeat of layoff announcements from major companies has workers on edge."
The tech sector, in particular, has been a lightning rod for concern. High-profile firms like Meta and Google recently announced plans to trim their workforces by 5% and 8%, respectively, citing "strategic realignment" in an unpredictable market. Meanwhile, traditional industries like manufacturing and retail are also scaling back, with companies like Ford and Walmart signaling hiring freezes through mid-2025.
For many, these developments evoke memories of the economic turbulence seen in past downturns. "I’ve been through layoffs before, and it’s a gut punch," said Mark Rivera, a 38-year-old software engineer from Seattle. "Seeing all these headlines makes me wonder if I should start brushing up my resume now."
Adding to the tension, job openings have declined significantly. The Bureau of Labor Statistics reported that available positions dropped to 7.8 million in February 2025, down from a peak of 11.2 million in 2023. Hiring activity has also cooled, with employers adopting a cautious approach amid fears of a looming recession.
Economists remain divided on what lies ahead. Some argue that the Federal Reserve’s efforts to tame inflation—through interest rate hikes now holding steady at 5.25%—could tip the economy into a contraction. Others point to resilient consumer spending and a still-robust labor market as signs that a full-blown downturn might be avoided.
Still, the uncertainty is taking a toll. A separate poll by Gallup found that 55% of Americans believe the country is already in a recession, despite official data suggesting otherwise. "Perception often drives behavior," noted Michael Torres, a labor market analyst at Goldman Sachs. "If people think tough times are coming, they’ll tighten their belts—and that can become a self-fulfilling prophecy."
Workers aren’t just worried about layoffs; they’re also grappling with stagnating wages. While inflation has eased to 3.1% from its 2022 peak, pay raises haven’t kept pace for many. The Indeed survey found that 43% of respondents feel their income isn’t stretching as far as it did a year ago, amplifying financial stress.
For now, job seekers face a tougher road. Applications per job posting on Indeed have risen 20% since January, indicating fiercer competition. "It’s a buyer’s market for employers," Jensen said. "Companies know they can afford to be picky."
As spring 2025 approaches, the mood among American workers remains cautious. While some hold out hope for a soft landing, others are bracing for impact. "I’m just trying to stay adaptable," said Rivera. "You never know what’s around the corner."