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Mass layoffs and AI have white-collar workers spooked. Ways to guard your finances in changing job m
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Reports of a rocky job market and increased artificial intelligence (AI) use have given way to white-collar dread as the new year begins.
As the unemployment rate hit 4.4% in December, job outplacement firm Challenger, Gray & Christmas reported that employers across the U.S. had announced over 1.2 million job cuts in 2025 a 58% increase from the previous year (1).
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Pessimism about keeping one’s job among educated workers has elevated. The Federal Reserve Bank of New York found in December those with a bachelor’s degree or higher put the probability of losing or leaving their job in the next 12 months at 15.2%, up two percentage points from a year ago (2).
“It’s a moment of intense uncertainty,” Sarah Rand told The Wall Street Journal in an article published Dec. 16 (3). She was laid off from her six-figure communications job at the University of Chicago in the spring. “I used to look at the job market as if I moved, I’d have the opportunity to level up. Now I’ll be lucky to stay the same.”
New college grads also seem to be feeling the pinch. A survey by Cengage Group found that only 30% of 2025 graduates had found a full-time job in their field by July, compared to 41% of the previous year’s class (4).
Business leaders extolling the use of AI is likely adding fuel to the fire. At a conference in June, Ford CEO told the audience “literally half of all white-collar workers in the U.S.” would be replaced by the technology (5). As firms seek to shrink staff in favor of AI, and more profits, where does that leave human workers?
“Their worries are very understandable, given everything that is in the news,” Guy Berger, director of economic research at the Burning Glass Institute, told The Journal. “You know that if you’re laid off, you might be looking for a while.”
The average unemployment in the U.S. lasts around five and a half months, according to the Bureau of Labor Statistics. Given the current high cost of living, it’s understandable some workers might be holding onto their jobs for dear life.
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“Staying put is what I feel is a safer choice,” James Wright told The Journal. According to the publication, he hopped between finance jobs in 2022 and 2023, but is now standing fast due to layoff fears.
As for AI, while he’s unsure of the technology’s trajectory, he acknowledges its potential to disrupt the workforce.
“If it keeps developing at the pace it is, a lot of different jobs, my job included, could go away,” he said.
Whether you’re searching for a new job or holding onto an old one, reviewing your goals and recalibrating your finances can help you to understand the best path forward for your career and put you on the path to succeed and meet your financial needs.
Some ways to meet the financial challenges of 2026 may include:
Improve your financial literacy: Strengthening your understanding of how to manage your wealth can help you to make better financial choices in the coming year. It can start with budgeting and go on up to investing.
Build an emergency fund: With stormy economic weather ahead, many households may want to consider saving up to six months’ worth of expenses in an emergency fund to offset any unexpected costs down the road.
Consider a side hustle: If it’s to increase your income or supplement it while you’re hob hunting, earning extra funds any way you can might help if you’re in a financial squeeze.
Invest in job skills: Gaining more knowledge about your field or acquiring more skills can serve you well at work. If you’re between jobs, you might find many of the skills you picked up at your old workplace or new ones you learn can be applied to different industries.
Visit a financial advisor: A professional review your finances, if you can afford it, may help you conserve money in the long run. An advisor can help you adjust your plans to your current status to help keep you on the path toward your goals.
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Join 200,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Challenger, Gray & Christmas (1); Federal Reserve Bank of New York (2); The Wall Street Journal (3); Cengage Group (4); The Aspen Institute (5)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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Reports of a rocky job market and increased artificial intelligence (AI) use have given way to white-collar dread as the new year begins.
As the unemployment rate hit 4.4% in December, job outplacement firm Challenger, Gray & Christmas reported that employers across the U.S. had announced over 1.2 million job cuts in 2025 a 58% increase from the previous year (1).
Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — here’s what it is and 3 simple steps to fix it ASAP
Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how
I’m approaching retirement with no savings. Should I panic? Here are 6 easy ways to catch up (and fast)
Pessimism about keeping one’s job among educated workers has elevated. The Federal Reserve Bank of New York found in December those with a bachelor’s degree or higher put the probability of losing or leaving their job in the next 12 months at 15.2%, up two percentage points from a year ago (2).
“It’s a moment of intense uncertainty,” Sarah Rand told The Wall Street Journal in an article published Dec. 16 (3). She was laid off from her six-figure communications job at the University of Chicago in the spring. “I used to look at the job market as if I moved, I’d have the opportunity to level up. Now I’ll be lucky to stay the same.”
New college grads also seem to be feeling the pinch. A survey by Cengage Group found that only 30% of 2025 graduates had found a full-time job in their field by July, compared to 41% of the previous year’s class (4).
Business leaders extolling the use of AI is likely adding fuel to the fire. At a conference in June, Ford CEO told the audience “literally half of all white-collar workers in the U.S.” would be replaced by the technology (5). As firms seek to shrink staff in favor of AI, and more profits, where does that leave human workers?
“Their worries are very understandable, given everything that is in the news,” Guy Berger, director of economic research at the Burning Glass Institute, told The Journal. “You know that if you’re laid off, you might be looking for a while.”
The average unemployment in the U.S. lasts around five and a half months, according to the Bureau of Labor Statistics. Given the current high cost of living, it’s understandable some workers might be holding onto their jobs for dear life.
Read More: The average net worth of Americans is a surprising $620,654. But it almost means nothing. Here’s the number that counts (and how to make it skyrocket)
“Staying put is what I feel is a safer choice,” James Wright told The Journal. According to the publication, he hopped between finance jobs in 2022 and 2023, but is now standing fast due to layoff fears.
As for AI, while he’s unsure of the technology’s trajectory, he acknowledges its potential to disrupt the workforce.
“If it keeps developing at the pace it is, a lot of different jobs, my job included, could go away,” he said.
Whether you’re searching for a new job or holding onto an old one, reviewing your goals and recalibrating your finances can help you to understand the best path forward for your career and put you on the path to succeed and meet your financial needs.
Some ways to meet the financial challenges of 2026 may include:
Improve your financial literacy: Strengthening your understanding of how to manage your wealth can help you to make better financial choices in the coming year. It can start with budgeting and go on up to investing.
Build an emergency fund: With stormy economic weather ahead, many households may want to consider saving up to six months’ worth of expenses in an emergency fund to offset any unexpected costs down the road.
Consider a side hustle: If it’s to increase your income or supplement it while you’re hob hunting, earning extra funds any way you can might help if you’re in a financial squeeze.
Invest in job skills: Gaining more knowledge about your field or acquiring more skills can serve you well at work. If you’re between jobs, you might find many of the skills you picked up at your old workplace or new ones you learn can be applied to different industries.
Visit a financial advisor: A professional review your finances, if you can afford it, may help you conserve money in the long run. An advisor can help you adjust your plans to your current status to help keep you on the path toward your goals.
A whopping 41% of Americans making $300K to $500K still live paycheck to paycheck. Here are Suze Orman's 6 practical tips to leave that stressful trap behind
Robert Kiyosaki says this 1 asset will surge 400% in a year — and he begs investors not to miss its ‘explosion’
What's your worth? Here are the 3 net worth milestones that change everything for Americans (and what they say about you)
This $1B private real estate fund is now accessible to non-millionaires. Here’s how you can get started with as little as $10
Join 200,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Challenger, Gray & Christmas (1); Federal Reserve Bank of New York (2); The Wall Street Journal (3); Cengage Group (4); The Aspen Institute (5)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
Sign in to access your portfolio
AI Description
The article discusses the impact of mass layoffs and increased AI usage on white-collar workers, highlighting the resulting financial anxiety and job market instability. It provides insights into the broader economic trends affecting employment and offers advice on financial preparedness.