27% of Americans Are Worried About Job Security. Take These 3 Steps if You’re Worried, Too

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Does the idea of losing your job make you nervous? Read on to see how you can address that fear. 

When you look at U.S. unemployment data, the numbers seem to paint a pretty rosy picture. In April, the national unemployment rate fell to 3.4%. And last month, 253,000 jobs were added to the economy.

In spite of that, a recent CFP Board survey says that 27% of Americans are very concerned about job security. And it’s actually pretty easy to see why.

For one thing, many large employers have announced or implemented layoffs since the start of the year. And while a lot of those layoffs came out of the tech sector, they haven’t just been limited to tech jobs.

Also, many financial experts continue to warn of a recession. In fact, the Federal Reserve says that it anticipates a recession at some point in 2023, albeit a mild one.

If you’re worried about potentially losing your job, it can make for a very unpleasant existence. Concerns about job security can interfere with your productivity and your general wellbeing. So if you’re worried about job loss, take these steps as soon as you can.

1. Grow your job skills

Sometimes, even highly skilled employees wind up on the chopping block when layoffs come into the picture. But the more job skills you’re able to develop, the more protection you can buy yourself. After all, who would your employer rather let go of if push comes to shove — someone with the minimal skills needed to do the job, or someone who’s clearly gone above and beyond to be great at what they do?

2. Start networking

Building a professional network of contacts could give you peace of mind as recession warnings continue. The more people you develop relationships with, the more resources you’ll have at your disposal should you lose your job and need to find a new one. You can meet new people within your industry by attending networking events and conferences, or by seeing what online and social media groups you can join.

3. Boost your savings

If you had millions of dollars in your savings account, would you be worried about the loss of a job? Maybe not. At that point, you’d have ample cash reserves to pay your bills while looking for work.

The good news is that you don’t need millions of dollars in savings to protect yourself in the event of a layoff. What you do need, though, is a strong emergency fund — one with enough money to cover at least three months’ worth of bills, and ideally, more like six to 12 months’ worth.

Take a look at your expenses and figure out how much you spend monthly on essentials like your car payments, mortgage, food, and utilities. Multiply that figure by a minimum of three, and that’s how you establish your emergency fund goal. If you’re not quite there yet, make an effort in the coming weeks and months to boost your savings so you can walk around confident that should your job disappear, you still have a way to cover your expenses.

READ MORE: Emergency Fund Calculator

It’s easy to see why job security, or a lack thereof, is a problem for so many people right now. But if you take these steps, it might really help you improve your outlook.

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