As Labor Day approaches, U.S. workers don’t seem to be in a celebratory mood, with rumblings about a possible economic downturn raising anxiety that layoffs will rise.
Nearly two-thirds of Americans recently polled by LendingTree think a recession is coming. And 41% expect unemployment to increase over the next year, according to the Federal Reserve Bank of New York — a seven percentage point jump since January. Two in five workers are personally worried about losing their job in the next 12 months, a 2025 study by the American Psychological Association found.
Are they right to be concerned? Although private-sector hiring hit a two-year low this spring, unemployment has been holding steady at just over 4%. And many forecasters have moderated earlier ominous projections about the economy, with Wall Street firms such as Goldman Sachs and J.P. Morgan recently lowering their estimated risk of recession this year to 30% to 40%, from as high as 60% in April.
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Still, history shows the job market is typically a lagging indicator, turning sour only after other parts of the economy have tumbled. And career experts note that conditions differ from industry to industry — layoffs have already been rising in the technology, finance and retail sectors — and the steps you take to strengthen your job prospects today will hold you in good stead no matter what happens to the economy.
“It’s smart to prep while the sun is still shining,” says Nancy Ancowitz, a career strategist in New York City. “Think of it as career insurance.”
Job experts suggest that you make these moves now.
Refresh your branding
If you’re laid off, you want to be able to hit the ground running, with an updated résumé, LinkedIn profile and professional website (if you have one). Make sure the picture you present to the world reflects how you want to be perceived and the kinds of roles you hope to attract. “If people don’t know what makes you special, they won’t think of you when opportunity knocks,” says Ancowitz, author of Self-Promotion for Introverts.
Focus less on job titles and responsibilities and more on the results you have achieved and qualities you bring to your position. Be specific and quantify results wherever possible. Rather than simply saying you’ve led partnerships, for example, it’s better to say you’ve generated 15% in incremental revenue through joint ventures with new affiliates.
The key, says Ancowitz: “Always frame your message in terms of what you offer — not just what you want.”
Warm up your network
Despite the advent of artificial intelligence and other tech tools to screen job candidates, who you know is still a critical element of landing a job, should you need a new one. “Research shows that more than half, and in some cases as much as 80%, of hiring involves people talking to people,” says career coach Beverly Jones, author of Find Your Happy at Work. “Building human connections is a big part of how you create opportunities.”
The best time to reach out to former colleagues with whom you’ve lost touch and establish new contacts in your field is when you don’t actually need a job and aren’t asking anything of them. It doesn’t have to be a heavy lift: offering a quick check-in or hello via email or LinkedIn, commenting on their posts so you show up on their radar, and meeting for an occasional coffee are all good ways to maintain a connection. “These small touches compound — and keep your network warm and active when you do need it,” Ancowitz says.
Be sure to connect with people who work in other areas of your company as well as contacts outside of it. “Your manager might be one of the people who is laid off, or your division could get the ax,” says career coach Caroline Ceniza-Levine, founder of DreamCareerClub.com. “But there may still be opportunities in other areas of the business.”
Make yourself indispensable
Increasing your perceived value at work helps reduce the chances that you’ll be among those laid off if your employer needs to downsize. Maybe you could take an online course to learn a new in-demand skill. (“You’d have to be living in a cave not to know that understanding the impact of AI on your business is in the zeitgeist now,” says Ceniza-Levine.) Or perhaps you could identify a new project to boost revenue, or position yourself as the go-to person for a new technology or a key client relationship.
“Be the person people rely on when it matters,” Ancowitz says.
Also make sure you know your manager’s most urgent priorities — and that your suggestions and actions align with them. “You look good if you make the boss look good,” says New York City career coach Roy Cohen. “Plus, when we work for someone who feels like we’re loyal to them, they are going to work a lot harder to protect us.”
Work on your Plan B
If a downturn does develop and you are laid off, it could take a while to find a new position. During the Great Recession, the median duration of unemployment rose from nearly nine weeks in November 2007 to a peak of 25 weeks in June 2010, with older workers needing more time than younger ones to find a new position.
Think about ways you could bring in extra income if you were to find yourself in job-search mode. Maybe you could turn a hobby such as photography or woodworking into a lucrative side hustle. Or you could work as a consultant in your field.
Former employers are an especially good target for a consulting gig — one that could lead you to find your next job. So-called boomerang employees now account for 35% of new hires, up from 31% in 2024, according to payroll provider ADP.
No matter what specific action you take, though, the important thing is to do something. Says Jones, “It won’t be wasted energy, because the steps you take to protect your job now will help you advance professionally no matter what happens with the economy.”
Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.
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