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Reports of a rocky job market and increased artificial intelligence (AI) use have given way to white-collar dread as the new year begins.<\/p>\n
As the unemployment rate hit 4.4% in December, job outplacement firm Challenger, Gray & Christmas reported that employers across the U.S. had announced over 1.2 million job cuts in 2025 a 58% increase from the previous year (1).<\/p>\n
Pessimism about keeping one\u2019s job among educated workers has elevated. The Federal Reserve Bank of New York found in December those with a bachelor\u2019s degree or higher put the probability of losing or leaving their job in the next 12 months at 15.2%, up two percentage points from a year ago (2).<\/p>\n
\u201cIt\u2019s a moment of intense uncertainty,\u201d Sarah Rand told The Wall Street Journal<\/em> in an article published Dec. 16 (3). She was laid off from her six-figure communications job at the University of Chicago in the spring. \u201cI used to look at the job market as if I moved, I\u2019d have the opportunity to level up. Now I\u2019ll be lucky to stay the same.\u201d<\/p>\n New college grads also seem to be feeling the pinch. A survey by Cengage Group found that only 30% of 2025 graduates had found a full-time job in their field by July, compared to 41% of the previous year\u2019s class (4).<\/p>\n Business leaders extolling the use of AI is likely adding fuel to the fire. At a conference in June, Ford CEO told the audience \u201cliterally half of all white-collar workers in the U.S.\u201d would be replaced by the technology (5). As firms seek to shrink staff in favor of AI, and more profits, where does that leave human workers?<\/p>\n \u201cTheir worries are very understandable, given everything that is in the news,\u201d Guy Berger, director of economic research at the Burning Glass Institute, told The Journal<\/em>. \u201cYou know that if you\u2019re laid off, you might be looking for a while.\u201d<\/p>\n The average unemployment in the U.S. lasts around five and a half months, according to the Bureau of Labor Statistics. Given the current high cost of living, it\u2019s understandable some workers might be holding onto their jobs for dear life.<\/p>\n Read More: The average net worth of Americans is a surprising $620,654. But it almost means nothing. Here\u2019s the number that counts (and how to make it skyrocket)<\/strong><\/p>\n \u201cStaying put is what I feel is a safer choice,\u201d James Wright told The Journal<\/em>. According to the publication, he hopped between finance jobs in 2022 and 2023, but is now standing fast due to layoff fears.<\/p>\n<\/p><\/div>\n As for AI, while he\u2019s unsure of the technology\u2019s trajectory, he acknowledges its potential to disrupt the workforce.<\/p>\n \u201cIf it keeps developing at the pace it is, a lot of different jobs, my job included, could go away,\u201d he said.<\/p>\n Whether you\u2019re searching for a new job or holding onto an old one, reviewing your goals and recalibrating your finances can help you to understand the best path forward for your career and put you on the path to succeed and meet your financial needs.<\/p>\n Some ways to meet the financial challenges of 2026 may include:<\/p>\n Improve your financial literacy<\/strong>: Strengthening your understanding of how to manage your wealth can help you to make better financial choices in the coming year. It can start with budgeting and go on up to investing.<\/p>\n Build an emergency fund<\/strong>: With stormy economic weather ahead, many households may want to consider saving up to six months\u2019 worth of expenses in an emergency fund to offset any unexpected costs down the road.<\/p>\n Consider a side hustle<\/strong>: If it\u2019s to increase your income or supplement it while you\u2019re hob hunting, earning extra funds any way you can might help if you\u2019re in a financial squeeze.<\/p>\n Invest in job skills<\/strong>: Gaining more knowledge about your field or acquiring more skills can serve you well at work. If you\u2019re between jobs, you might find many of the skills you picked up at your old workplace or new ones you learn can be applied to different industries.<\/p>\n Visit a financial advisor<\/strong>: A professional review your finances, if you can afford it, may help you conserve money in the long run. An advisor can help you adjust your plans to your current status to help keep you on the path toward your goals.<\/p>\n Join 200,000+ readers and get Moneywise\u2019s best stories and exclusive interviews first \u2014 clear insights curated and delivered weekly. Subscribe now.<\/strong><\/p>\n We rely only on vetted sources and credible third-party reporting. For details, see our<\/em> editorial ethics and guidelines<\/em>.<\/em><\/p>\n Challenger, Gray & Christmas (1); Federal Reserve Bank of New York (2); The Wall Street Journal (3); Cengage Group (4); The Aspen Institute (5)<\/p>\n