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As 2025 comes to a close, the American workforce stands at a crossroads. What began as a year of cautious optimism has ended with workers bracing for even more uncertainty in the year ahead.
MyPerfectResume’s surveys and reports revealed a clear picture: Employees are more anxious than ever, employers are pulling back, and the rules of work are being rewritten in real time.
From mounting fears of layoffs and inflation to the surge in side hustles as a lifeline, 2025 was less about career growth and more about survival. Workers sought stability amid instability, while employers balanced pragmatism with risk.
Now, as we turn the page to workforce trends in 2026, the question isn’t just how Americans will work, but whether trust, security, and motivation can be rebuilt in a changing economy.
Key Findings
- 81% of workers feared losing their jobs in 2025.
- 92% expected a recession; 80% were worried that inflation would shrink their wages.
- 71% of employees relied on secondary income to stay afloat.
- 79% of HR professionals reported being cautious about hiring.
- 79% of workers felt disconnected from their jobs; only 22% aligned with their managers weekly.
- Quitting without a new job became rare, reflecting a “safety first” mindset.
- 43% of employees feared a full-time RTO more than losing a relationship or going through a divorce.
Fear Took Center Stage
If one word defined 2025, it was fear. According to the Great Stay Report, 81% of workers reported fearing job loss, and nearly half specifically worried about layoffs within their department.
Anxiety wasn’t confined to the workplace: Nine in 10 (92%) expected a recession, underscoring how fragile workers perceived the economy to be.
The Career Confidence Report revealed deeper layers of unease:
- 80% worried inflation would erode their wages despite modest pay raises.
- 71% believed tariffs would damage their jobs or industries, reflecting geopolitical uncertainty.
- 42% anticipated layoffs within six months, indicating the immediate nature of the threat.
For many employees, 2025 wasn’t about thriving in their careers; it was about surviving the next round of bad news.
Side Hustles Shifted From Extra to Essential
In 2025, secondary income moved from optional to indispensable.
The Secondary Income Sources Report showed that 71% of workers rely on side hustles, freelance projects, or second jobs to cover financial needs. But digging deeper, the report found stark divides:
- 42% use secondary income to pay off debt.
- 35% rely on it for essentials like housing and groceries.
- 37% save extra income for primary goals, such as retirement or buying a home.
This reality is reshaping the meaning of work. For many, side jobs are no longer a pursuit of passion; they’re a safety net against stagnant wages and rising living costs.
Men were more likely to own side businesses (44% vs 35% of women), and lower-income workers reported the steepest trade-offs, including a loss of focus and declining health.
Employers Got More Cautious, but Also More Flexible
Hiring slowed noticeably in 2025, but it didn’t grind to a halt.
The Hiring Outlook 2025 Report found that 79% of HR professionals were cautious about expanding staff. Companies cited economic headwinds, cost-cutting pressures, and continued uncertainty as reasons to tread carefully.
Yet employers also showed pragmatism by adapting to worker demands:
- 68% said they were more willing to accept resumes with short stints, gaps, or career pivots.
- 61% reported adopting pay transparency practices to compete for talent.
- Nearly half of the companies expanded flexible or hybrid work options, reflecting a recognition that rigid policies could deter employees.
In short, companies were conservative with headcount but also embraced creative ways to retain and attract talent.
Engagement Slipped to New Lows
Even as employees remained in place, engagement declined.
The Great Detachment Report revealed that 79% of employees felt disconnected from their jobs, while only 22% reported feeling aligned with their managers on a weekly basis.
The drivers of detachment are clear:
- Low pay: 67% felt their compensation didn’t match their workload.
- Overwork: 54% reported heavier responsibilities due to headcount cuts.
- Poor management: 48% reported a lack of consistent communication from leaders.
- Isolation: Remote and hybrid workers reported feelings of disconnection, despite appreciating the flexibility of working from home.
The paradox of 2025 is that fewer people quit, but fewer feel invested in their work. Retention was high, but motivation was fragile.
Job Seekers Played It Safe
In a climate defined by fear, workers shied away from risk-taking.
The Job Search Behavior Report and Fewer Workers Quitting Report showed that resignations without backup jobs dropped sharply. Only a minority of workers were willing to quit without another offer, compared to the “Great Resignation” years when bold moves dominated the labor market.
Instead, job seekers recalibrated strategies:
- 58% said they were less likely to apply for roles that required more experience than they had.
- 46% reported staying longer in jobs they disliked because they didn’t trust the job market.
- 41% cited fear of layoffs as a reason to remain in place.
As a result, workers held on to jobs for stability, but that stability often meant staying in roles where they felt stuck or undervalued.
Return-to-Office Tensions Didn’t Ease
The RTO battle only intensified in 2025.
The Return to Office Report found that 43% of employees feared being forced back to the office full-time more than losing a romantic relationship, or even going through a divorce. That stat captures just how personal workplace flexibility has become.
Even generous perks didn’t move the needle. Among those surveyed, key RTO statistics include:
- 36% said no perk would persuade them to return full-time.
- 50% cited fuel reimbursement as the most appealing incentive.
- 47% said unlimited PTO would help, but it would still not be enough to replace the benefits of remote work.
- 41% wanted a four-day workweek as a compromise.
Mandates are increasingly focused less on collaboration and more on control, eroding trust between employers and employees.
Trust and Security: The Challenges Ahead
In short, 2025 was the year of cautious careers. Workers clung to stability, even as they feared layoffs and rising costs. Employers slowed hiring but showed new flexibility.
Engagement cratered, side hustles surged, and the RTO battle dragged on.
As we move into 2026, one thing is clear: rebuilding trust and creating genuine security, both financially and emotionally, will be the biggest challenge facing both workers and employers.
For press inquiries, contact Nathan Barber at nathan.barber@bold.com.
About MyPerfectResume
MyPerfectResume Resume Builder with professional templates is designed to help job seekers elevate their careers. The easy-to-use platform was created to eliminate the hassle of resume writing, offering professionally written examples, free expert tips, step-by-step guidance to make a resume, and valuable interview advice to create an outstanding job application effortlessly. Since 2012, MyPerfectResume's Resume Builder has helped more than 11 million job seekers create their perfect resumes online. Its comprehensive employment surveys have been featured in Forbes, Yahoo! Finance, CNBC, Newsweek, USA Today, BBC, Workable, and more. Stay connected with MyPerfectResume’s latest Facebook, LinkedIn, Instagram, X, and Pinterest updates.
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MyPerfectResume’s 2026 State of the Workforce Report
Jasmine is certified career coach and recognized expert in job search strategy. She is committed to helping job seekers navigate the job market and succeed in their careers.
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