Workers are terrified of layoffs, AI and a recession in 2024

Just over a month into 2024, and companies like UPS, Citigroup and Salesforce have announced plans to cut thousands of jobs, signaling to workers that the job market will likely be tough this year.

But many employees are already expecting the worst. Resume-builder platform MyPerfectResume surveyed nearly 2,000 Americans and found that 85% of workers are worried about losing their jobs, while 78% predict a recession will finally hit the economy. Although the U.S. avoided two consecutive quarters of economic slow-down in 2023 — the conditions required for an official recession — the continued impact of record inflation rates and big layoff announcements have set workers on edge in the new year. 

"Various factors like a possibility of a recession or economic slowdown, the threat of more layoffs, as well as the rising cost of living are contributing to the uncertainty job seekers are feeling at the start of 2024," says Kellie Hanna, career expert at MyPerfectResume. "Given the potential impact one or all of these events pose for job seekers, it's understandable that there are some negative feelings toward this year's outlook."  

Read more: The tech industry is still failing Black workers. Here's why

The anxiety around layoffs is only bolstered by the fact that workers expect the job market to swing more securely in employers' favor as hiring rates slow and companies focus on entry-level positions that usually come with less competitive salaries and benefits. According to MyPerfectResume, 69% of Americans believe the competition for jobs will increase in 2024 and 45% predict a reduction in remote job openings. 

Workers' fears aren't unfounded: 90% of employers plan on bringing their employees back to the office in some capacity this year, according to Resume Builder. Meanwhile, tech companies, which have traditionally been welcoming of remote work, are still cutting down their workforces. Layoffs.fyi estimates that 32,000 tech workers were already laid off in January alone, leaving less opportunity for sought-after remote roles.  

"Last year saw fairly significant and widespread workforce reductions which, combined with a slowed pace of hiring, is likely causing unease about the possibility of increased competition," says Hanna. "And while we expect to see remote and hybrid work opportunities continue to be options for job seekers this year and beyond, the demand for remote jobs remains high, making it a very competitive market."

Read more: Why remote workers are the happiest, despite being underpaid

AI continues to take the heat for job loss, with eight in 10 respondents fearing they will no longer have a job due to the growth of the technology, according to MyPerfectResume. While companies like Chat GPT and IBM have claimed to replace workers with AI, the technology proves to be limited. In fact, a study from MIT found that the cost of developing and training an AI model to do a task like monitoring baking ingredients to ensure they haven't spoiled is not worth what the tech would save in labor costs — not to mention in missed nuances that come with handling food. 

Workers' fears surrounding AI are more than valid, but the question of whether employers will truly benefit from it by cutting out human talent remains up in the air. Hanna advises job seekers and workers to instead focus on developing sought-after skills in their industry or side hustles that can act as parachutes in case they're laid off. This also means growing and maintaining your professional network, tracking professional milestones and accomplishments for future resumes and staying up to date with what roles are available in your industry, she says. 

Read more: Here's what's really making employees happy at work

"It can be helpful for workers to focus more on the things they can control," says Hanna. "As job seekers navigate uncertainty in 2024, establishing a plan that helps prepare for any fast or unexpected changes, and also a plan to seek out growth opportunities is a critical step in ensuring a successful transition through a trying period."