Layoff Anxiety Is Fueling Burnout Among U.S. Workers, Experts Warn
In 2025, the American workplace is tense.
Even if you're still employed, the fear of not being employed tomorrow is weighing heavily — and experts say it’s leading to burnout at record speeds.
A new wave of research shows that layoff anxiety — even in the absence of actual job loss — is driving chronic stress, emotional exhaustion, and disengagement. It's a silent epidemic that’s reshaping how Americans feel about work, purpose, and stability.
“People aren’t just burning out from doing too much work — they’re burning out from the constant fear that their work might not be enough to keep them employed.”
— Dr. Priya Mammen, Clinical Psychiatrist and Workplace Mental Health Researcher
The Layoff Landscape in 2025
Although unemployment remains relatively low, layoffs continue to dominate headlines — particularly in tech, media, finance, and retail.
According to Layoffs.fyi, over 300,000 tech workers alone have been laid off since 2022, and mass job cuts are now common even in previously “safe” sectors.
What’s causing it?
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AI replacing routine tasks
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Economic uncertainty
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Corporate restructuring
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Investor pressure to "cut costs"
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Overhiring during the 2020–2022 boom
What Is Layoff Anxiety?
Layoff anxiety is the chronic fear of being let go, even without direct signs. It can manifest as:
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Hypervigilance about performance
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Worry over Slack messages or surprise meetings
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Constantly refreshing job boards "just in case"
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Feelings of powerlessness and dread
“The threat doesn’t need to be real — the perception of instability is enough to erode mental health,” says Dr. Lauren Cook, a licensed psychologist specializing in occupational trauma.
Source: American Psychological Association
How It Leads to Burnout
Burnout isn’t just stress — it’s full-on depletion.
The World Health Organization defines burnout as:
“A syndrome resulting from chronic workplace stress that has not been successfully managed.”
When layoff anxiety creeps in, employees often:
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Overwork to prove their worth
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Hide struggles for fear of being seen as weak
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Disconnect emotionally to protect themselves from disappointment
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Struggle to sleep, focus, or enjoy life outside of work
Eventually, this results in:
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Exhaustion (mental + physical)
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Cynicism ("Why even bother?")
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Decreased efficacy ("I'm failing anyway")
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Quitting without quitting (a.k.a. quiet quitting or internal resignation)
WHO Burnout Definition
What the Data Shows
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🔹 72% of U.S. workers say they worry about being laid off, even if their company isn’t downsizing
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🔹 57% report higher stress levels compared to 3 years ago
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🔹 41% say they’re considering leaving their job solely due to mental health concerns
Source: McKinsey Health Institute, 2024 Workplace Mental Health Report
Who’s Most at Risk?
Layoff anxiety affects everyone, but especially:
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Gen Z and Millennials, who’ve already lived through COVID, inflation, and multiple economic shocks
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Contractors and freelancers, who face constant instability
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Women and minority workers, who historically bear the brunt of corporate “cost-cutting”
How Companies Can Help
If employers want to retain talent and prevent widespread burnout, experts recommend:
1. Transparent communication
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Share layoff rationale early and clearly
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Avoid vague phrases like “restructuring” or “streamlining”
2. Mental health resources
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Offer therapy, coaching, or stress-relief stipends
3. Internal mobility
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Give employees a path to pivot instead of panic
4. Build a culture of psychological safety
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Allow workers to speak up without fear
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Reward honesty and transparency
What Workers Can Do to Cope
Even if you can't control layoffs, you can take steps to protect your mental health:
1. Talk about it
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You're not alone. Share your fears with colleagues or therapists.
2. Set work boundaries
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Don’t let anxiety force you into overwork. Breaks = resilience.
3. Upskill strategically
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Take a free course or certification in your downtime to stay ahead
4. Update your resume — just in case
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Knowing you’re ready can calm the “what ifs.”
5. Stay grounded in facts
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Most people worried about layoffs don’t actually get laid off. Your brain loves worst-case scenarios — don’t always believe it.
Final Thoughts
Layoff anxiety isn’t just about job loss. It’s about identity, worth, and uncertainty — and it’s leading millions of Americans to burn out faster than ever before.
We can’t always control the economy. But we can build stronger mental habits, healthier workplace cultures, and support systems that help us thrive — even when the ground beneath us feels shaky.
If you’re feeling the weight of job insecurity, know this:
You’re not lazy. You’re not broken. You’re just tired from being constantly alert in a world that’s constantly uncertain.