Job Insecurity Now Stresses Majority of US Workers Amid Policy Changes

The American dream of stable employment now feels increasingly out of reach for millions of Americans. A majority of U.S. workers (54%) report job insecurity is significantly impacting their stress levels, according to a new American Psychological Association survey released this week.

With government policy shifts and economic concerns mounting, many employees now fear for their livelihoods in ways that are affecting both their work performance and personal wellbeing.

The 2025 Work in America survey, conducted by The Harris Poll on behalf of the APA, reveals a workforce grappling with unprecedented uncertainty. Nearly two-thirds of employed adults (65%) say their organizations have been affected by recent government policy changes, with 39% concerned they might lose their jobs within the next year specifically due to shifting policies.

How Policy Changes Are Reshaping Workplaces

Government policy shifts aren’t just abstract concerns—they’re fundamentally altering how organizations operate. One-fifth of workers report these impacts have been “significant” or “drastic,” requiring fundamental changes to their company’s operations or strategy.

The anxiety is particularly pronounced among government employees, with 53% of local, state, or federal workers anticipating further changes due to future policy shifts. One 38-year-old office worker expressed this common sentiment: “I am nervous about all of the workforce reductions as I know there have been many layoffs of federal government employees and subcontractors.”

This pervasive uncertainty is creating a cascade of negative effects. Workers at companies affected by policy changes are experiencing higher rates of emotional exhaustion and difficulty focusing compared to those at unaffected organizations.

The Economic Dimension

Beyond policy concerns, economic uncertainty has become a major stress driver. More than two in five workers (44%) fear an economic downturn could cost them their jobs within the next year—a significant increase from 36% in 2024.

The job market adds another layer of anxiety. More than half of workers (51%) believe finding new employment would take “significant time” if they lost their current position. Even more troubling, 44% say they would need to transition to an entirely different field or industry to secure new employment.

“When people feel their jobs are at risk, it creates a sense of uncertainty that can affect every aspect of their lives,” said Arthur C. Evans Jr., PhD, APA’s chief executive officer. “This cultural moment is threatening workers’ sense of stability, control and ability to meet their basic needs. And feelings of insecurity at work and poor mental health can amplify each other in a vicious cycle.”

The Personal Toll of Workplace Uncertainty

The mental health impacts of this uncertainty extend far beyond office hours. Among workers concerned about job security due to economic factors:

• 42% report work-related stress makes sleeping difficult
• 36% say their personal relationships are suffering due to workplace stress
• Workers affected by policy changes report higher rates of emotional exhaustion (27-30% vs. 18% at unaffected companies)
• Those at affected companies experience greater lack of interest, motivation, or energy (28-31% vs. 16% at unaffected organizations)

A 53-year-old office worker captured the prevailing sentiment: “Layoffs and shifts to using workforce overseas make me feel like I can be laid off at any time and devalued as an employee and [be] just a headcount.”

Another respondent, a 41-year-old Latino office worker, pointed to multiple stressors: “Uncertainty around job security, constant workload increases, and lack of clear communication from management cause stress.”

What Helps Workers Weather the Storm?

Despite these challenges, the survey identifies several factors that can mitigate job insecurity stress. Workers who feel they “matter” to their employer were significantly less likely to fear job loss due to economic factors (42% vs. 54% who felt they didn’t matter). Similarly, those satisfied with their manager relationships were less likely to describe their work as “toxic” (10% vs. 55% unsatisfied with management).

Perhaps most importantly, employees satisfied with their employer’s mental health support expressed fewer concerns about losing their jobs due to economic issues compared to those unsatisfied with available mental health resources (42% vs. 52%).

“In recent years, awareness has grown around the profound impact the workplace has on people’s mental health,” Evans noted. “This year’s survey makes one thing clear: unmanaged stress is not just a personal health issue—it’s a critical organizational risk, contributing to lower productivity and higher turnover. Employers have a responsibility to go beyond awareness and invest in evidence-based strategies that promote workers’ psychological well-being.”

How Can Workers Protect Their Mental Health?

For those caught in this uncertain environment, APA psychologists recommend several practical strategies: maintaining detailed records of skills and accomplishments, cultivating stronger connections with colleagues, seeking low-cost behavioral health services through state health centers, and remembering that the 988 Lifeline provides 24-hour access to confidential counseling.

As government policies continue evolving and economic indicators remain unpredictable, the data suggests organizations that invest in supportive management, meaningful employee relationships, and accessible mental health resources will likely see more engaged, productive workforces despite external uncertainties.

What remains clear is that the relationship between job security and mental health is bidirectional—each affecting the other in ways that can either create devastating downward spirals or, with proper support, help workers navigate even the most challenging periods of workplace transformation.