Almost four in five US employees fear losing their job during a potential upcoming recession, pointing to a high level of anxiety among workers amid increasing talk of an economic downturn.
That’s according to a recent survey from staffing company Insight Global, which also found that 54% of workers would take a pay cut if it meant staying employed. A similar share don’t think their job is recession-proof.
A growing chorus of economists are predicting a US recession within the next 12 months as the Federal Reserve ramps up its fight against decades-high inflation. Price increases are outpacing wage gains and denting Americans’ spending power, leading many to conclude that the downturn is already here.
Even so, the labor market has remained a bright spot, as the US unemployment rate is forecast to stay near the lowest in more than 50 years in June when government data are released Friday. Layoffs are historically low, despite select job-cut announcements from companies such as Netflix Inc. and Tesla Inc.
Americans have good reason to fear for their job security -- almost nine out of 10 managers said they would “likely” have to lay off employees during a recession, according to the survey conducted in June, which polled more than 1,000 US workers largely in white-collar industries.
There are signs that workers are already getting squeezed. Applications for US unemployment insurance last week rose slightly to the highest since January, suggesting that the strength in the labor market is moderating.
Some 56% of American workers say they don’t feel financially prepared for a recession or don’t know how to prepare for one. Among demographic groups, women and millennials felt the most insecure.
This article was provided by Bloomberg News.