One of the biggest fears Americans have is getting laid off. This “layoff anxiety” trend affects one-third of Americans, according to Clarify Capital. Anxiety is higher among remote workers, with 40% of them worrying about losing their jobs compared to 20% of in-office workers.
It has gotten to the point where 69% of Americans would be happy to stay in the same job and avoid career growth if it led to more job security. The PNC 2025 Financial Wellness in the Workplace Report found that 67% of Americans live paycheck to paycheck, so there isn’t much financial wiggle room in the event of a layoff.
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Although many people dread getting laid off, it’s a scenario that you should prepare for in case it happens. These are some of the ways you can prepare for that scenario, minimize its impact on your finances and rebound quickly.
Create an Emergency Savings Account
Developing good financial discipline is critical for reducing your career stress and feeling more confident about challenges that come your way. Having more money in the bank can give you peace of mind and more time to get back on your feet if you get laid off.
Putting money into an emergency savings account each month is a great starting point. Ideally, this fund should cover six to 12 months of your living expenses. Accelerating your emergency savings account’s growth will require cutting your expenses.
While you don’t want to get rid of necessary expenses, you may find opportunities to trim costs if you have never created a budget. Unused subscriptions and impulsive purchases are good places to start if you want to reduce costs without downgrading your lifestyle.
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Develop New Skills
The more skills you develop, the more desirable you are in the marketplace. Working on high-income skills like mastering AI tools each weekend can introduce you to more job opportunities. Then, as you apply for jobs, you will feel more in control, since you won’t feel like all of your income depends on one employer.
Developing skills lets you leave on your own and find work sooner if you get laid off. Those skills can also translate into side hustles, which will diversify your income. Receiving income from multiple sources and knowing how to get more clients can minimize the weight of layoff anxiety.
Build Your Network
You never build a well when you are thirsty. Instead, it’s better to build the well when things are going well so you can draw water from it when you become thirsty in the future.
It’s a popular networking analogy that reveals the importance of building a network before you get laid off. Submitting job applications, connecting with professionals in your industry and attending industry events can help you build a network.
Some workers can also benefit from building a personal brand and posting occasionally on social media. This activity can establish you as an expert in your industry and attract more people to your social media accounts. You never know who may view your social media posts, and it may translate into a job opportunity or a side hustle.
Ride the Gravy Train
Layoff anxiety only takes place if you still have a job and are worried about getting laid off in the future. That means you still have a job, and you should optimize every paycheck for as long as you can. Use the paychecks to get out of debt, build an emergency fund and invest in assets.
The more effectively you manage your money and capitalize on this opportunity, the more your wealth will compound. Then, you will be better prepared in the event you get laid off. Any employer can lay off any worker at any time. While it’s always good to live below your means, you may want to tighten your spending even more during short stretches to build up toward long-term financial goals sooner.
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This article originally appeared on GOBankingRates.com: Half of Americans Are Worried About This Threat to Their Paychecks: 4 Things You Can Do
