Jan 26, 2026
Reports of a rocky job market and increased artificial intelligence (AI) use have given way to white-collar dread as the new year begins.
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).
Advertisement
Pessimism about keeping one’s job among educated workers has elevated. The Federal Reserve Bank of New York found in December those with a bachelor’s 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).
“It’s a moment of intense uncertainty,” Sarah Rand told The Wall Street Journal 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. “I used to look at the job market as if I moved, I’d have the opportunity to level up. Now I’ll be lucky to stay the same.”
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’s class (4).
AI disruption and job interruption
Business leaders extolling the use of AI may be adding fuel to the fire. At a conference in June, Ford CEO told the audience “literally half of all white-collar workers in the U.S.” 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?
“Their worries are very understandable, given everything that is in the news,” Guy Berger, director of economic research at the Burning Glass Institute, told The Journal. “You know that if you’re laid off, you might be looking for a while.”
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’s understandable some workers might be holding onto their jobs for dear life.
Advertisement
“Staying put is what I feel is a safer choice,” James Wright told The Journal. According to the publication, he hopped between finance jobs in 2022 and 2023, but is now standing fast due to layoff fears.
As for AI, while he’s unsure of the technology’s trajectory, he acknowledges its potential to disrupt the workforce.
“If it keeps developing at the pace it is, a lot of different jobs, my job included, could go away,” he said.
Must Read
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — are you doing the same?
- Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how
- Robert Kiyosaki says this 1 asset will surge 400% in a year and begs investors not to miss this ‘explosion’
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
What you can do to safeguard your finances
Whether you’re 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.
Some ways to meet the financial challenges of 2026 may include:
Improve your financial literacy: 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.
Advertisement
Build an emergency fund: With stormy economic weather ahead, many households may want to consider saving up to six months’ worth of expenses in an emergency fund to offset any unexpected costs down the road.
Consider a side hustle: If it’s to increase your income or supplement it while you’re hob hunting, earning extra funds any way you can might help if you’re in a financial squeeze.
Invest in job skills: Gaining more knowledge about your field or acquiring more skills can serve you well at work. If you’re 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.
Visit a financial advisor: 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.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Challenger, Gray & Christmas (1); Federal Reserve Bank of New York (2); The Wall Street Journal (3); Cengage Group (4); The Aspen Institute (5)
You May Also Like
- Turning 50 with $0 saved for retirement? Most people don’t realize they’re actually just entering their prime earning decade. Here are 6 ways to catch up fast
- Inside a $1B real estate fund offering access to thousands of income-producing rental properties — with flexible minimums starting at $10
- Vanguard’s outlook on U.S. stocks is raising alarm bells for retirees. Here’s why and how to protect yourself
- Here are 5 easy ways to own multiple properties like Bezos and Beyoncé. You can start with $10 (and no, you don’t have to manage a single thing)
Rebecca Holland is dedicated to creating clear, accessible advice for readers navigating the complexities of money management, investing and financial planning. Her work has been featured in respected publications including the Financial Post, The Globe & Mail, and the Edmonton Journal.
