The thought may be hard to avoid: Between the economy, return-to-office mandates, and the looming threat of artificial intelligence, could your job end up on the chopping block?

The nation’s labor market does seem to be at a turning point.

For one thing, it hasn’t stayed as strong as we thought: Revised government data shows the U.S. economy added 85,000 jobs between May and July — 274,000 fewer than previously estimated. In June, it turns out we actually lost jobs, marking the first decline since the pandemic in 2020.

Layoffs and job cuts are also intensifying in some regions, with employers using return-to-office policies or the advent of new AI tools to facilitate attrition, according to the Federal Reserve’s August Beige Book of economic conditions.

And there’s a lot of pessimism. People are increasingly staying put — whether they like their jobs or not — because they’re unsure they would be able to find work elsewhere. In August, worker confidence in the market reached its lowest point in any month since at least 2013.

So what can you do? The best way to stave off worry and stress is to prepare for the worst and hope for the best. While you can’t control the economy or AI adoption, you can build up your financial cushion, work on diversifying your income and stay adaptable.

Here’s how to start.

Focus on saving. Having a financial cushion to fall back on can immediately reduce your stress. If you’re not saving already, try to put away at least a little bit of money each payday.

•   Aim to end up with enough savings to cover at least three to six months’ worth of basic living expenses, but don’t be discouraged if you’re still a ways off. Every little bit adds up.

•   Keep this “sleep better at night” fund in a safe, liquid account (like a high-yield savings or money market account) so you can access it in a snap.

Tackle high-interest debt. Credit card debt can snowball even when you’re working, but it can really get out of hand if your income dries up and you’re only able to make the minimum monthly payment. Knock these balances down while you can.

•   A low-fee balance transfer or a debt consolidation loan can potentially lower your interest rates as well as your monthly payments.

•   Pro tip: Once you have enough savings to cover one month’s worth of living expenses, your money is better used paying off high-interest credit card debt. You can go back to building your savings after you’ve paid off those balances.

Cut back where you can. Look at your monthly spending carefully to determine where you can trim. (A spending tracker like SoFi’s Relay can help.) Maybe you can eat at home more, skip the laundry service or cancel those subscriptions you barely use. With inflation ticking up again, freeing up more cash for essentials and emergency savings will help you stay ahead even if you’re never out of work.

Diversify your income. A job loss can be less challenging if you have a side hustle, freelance gig, or part-time job in another field. Even a few weekend hours doing something remote or odd-job-ish can help. And these gigs often bring new skills, connections, or ideas that might feed back into your main role. See if you can build something semi-steady so you don’t lean quite as hard on your main job.

Keep your skills fresh. More than 70% of U.S. adults surveyed by Reuters/Ipsos said they’re concerned about the permanent job losses AI could trigger. But staying relevant makes you harder to replace, so whether it’s learning AI-adjacent skills or brushing up on the other skills, keep evolving. Take an online course, attend a webinar, or volunteer to try a new digital tool at work.

Related Reading

Many Employees With Side Hustles See Them as Insurance Policies, Glassdoor Says (HR Dive)

How the Job Market Will Shift in the Second Half of 2025 (Investopedia)

5 Things to Do If You’re Worried About a Recession (SoFi)

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