85% Fear Job Loss in 2024 — Two Main Reasons Why (and How to Financially Prepare)
While the job market has been relatively beneficial to jobseekers in the past months, a new survey found that a staggering 85% of Americans fear job loss in 2024. What’s more, MyPerfectResume’s 2024 Workplace Trends Survey found that job seekers have negative sentiments around several issues for 2024.
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Kellie Hanna, career expert at MyPerfectResume, said that the findings are not entirely surprising, as the possibility of a global recession or economic slowdown still looms. As such, it’s understandable to have concerns about businesses cutting their costs through workforce reductions — and here are the two main reasons why.
1. Reduction of Remote Positions and AI Fears
69% of those surveyed believe that competition for jobs will increase in 2024, and nearly half — 45% — predict a reduction in remote job openings. In addition, the surge of artificial intelligence is also a concern, with 78% of job seekers fearing job loss due to its growth in 2024.
“Persistent inflation and a rising cost of living, the rise of AI and the potential for increased automation and the growing gig economy all contribute to a large degree of uncertainty in regards to the job market in 2024,” said Hanna.
The survey also found that 62% expect the labor market will be more stressful than in previous years, and 40% surveyed predict that more people will suffer job burnout in 2024.
2. Anxieties About the Economy
According to Hanna, negative sentiments about the job market in 2024 could be caused by a variety of factors.
“Prominent large-scale layoffs throughout 2023, coupled with a slower pace of hiring, is likely causing concern about the potential for increased competition for open roles,” she said.
She added that other reasons include lingering economic anxieties and cautious forecasts for the coming year, worries about technology making certain jobs obsolete and concern about skills gaps and mismatches could also be contributing to these negative sentiments.
“While some concerns are more pressing than others, constant feelings of job insecurity can often create a self-fulfilling cycle of anxiety and uncertainty,” she noted.
What Can Workers Do To Succeed in This Environment?
According to Hanna, tending to your career from a holistic perspective can help manage some of the stress workers are feeling in this environment.
First, ensure you keep a list of your work achievements and an updated resume, which will help you move quickly in the event of an unexpected job change.
“Another path to success in an uncertain job market is to find ways to upskill and build your knowledge,” she added. For instance, evaluating your current job and industry then identifying potential skill-building opportunities shows potential employers you are willing to take initiative.
“As the job landscape changes and evolves, those who are able to find the opportunities for growth and embrace the changes will be well positioned to weather the upheaval,” she suggested.
Finally, having a robust networking plan and fostering professional relationships is key to building career resilience to help navigate through challenging economic times.
What Can Workers Do To Prepare Financially?
Against this backdrop of concerns and uncertain economic landscape, having a good understanding of personal finances is key.
For instance, Hanna recommneded monitoring daily expenses and tightening budgets, as well as working to increase personal savings, which can also alleviate some stress.
“Also, as the gig economy continues to offer opportunities for freelance or gig work, for some people, this is an option worth exploring as it can accelerate one’s ability to build a safety net with their finances,” she said.
Indeed, there is one note of optimism in the survey: 67% think the gig economy will continue to expand in 2024.
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Finally, Hanna added that as workers continue to navigate uncertainty in 2024, establishing a plan that helps them prepare for any fast and unexpected changes and at the same time seek out opportunities is a critical step in ensuring a successful transition through a trying period.
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This article originally appeared on GOBankingRates.com: 85% Fear Job Loss in 2024 — Two Main Reasons Why (and How to Financially Prepare)
