In an uncertain economy, layoffs tend to happen left and right, and if you are a member of Gen Z, your career may feel like it’s stalling more than starting. While layoffs at big tech giants like Meta and Amazon make headlines, many industries suffer the same fate behind closed doors. Public or private, the effects remain the same, and many older and younger generations alike are worried about job security.
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Digital natives like Gen Zers tend to gravitate toward job opportunities in the digital landscape. Here are more details on the industries people are most worried about layoffs and whether or not they should be.
Quick Take: Layoffs in 2025
Layoff concerns for the rest of this year and rolling into 2026 tend to boil down to trends such as economic uncertainty, political volatility, artificial intelligence (AI) and automation, shifting consumer behavior and over-hiring during booms.
Whether you are looking for a training program for a side gig or full-time job, you want to feel confident it will pay off in the long term, or at least for the next several years. Here are a few things to note:
- It’s estimated that due to the current state of the job market, nearly one in three Americans would take a 10% to 20% pay cut to avoid being laid off, even though 13% of Americans have no savings and are unprepared financially for a layoff, according to Clarify Capital research.
- Layoff anxiety in real time is growing everywhere, from social media platforms to community discussions.
- Working in the federal government sector also feels precarious as changes under the Trump administration, DOGE and DEI dismantling have made employment in government agencies feel tumultuous at best.
- While a lot of people are worried about layoffs, it tends to happen in some industries more than others. It’s important to reassess your skill set and develop transferable skills because they remain in demand through economic changes and downturns.
With all of this in mind, here are the top four industries where Gen Z workers are most concerned about layoffs right now.
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Tech
The tech industry is one of the most commonly hit industries, and it’s understandable why people in these industries are worried, especially since many work remotely. Clarify Capital also reports that anxiety is most common among remote workers (47%), more than double that of in-office workers (20%).
One reason for the layoffs is the outsourcing of talent, which is caused by funding issues.
“We’ve found that many U.S companies are hiring software developers in countries with lower wages, such as Brazil, Argentina, India and Pakistan,” said Susan Snipes, head of people at Remote People. “This is because they gain a competitive advantage by hiring the same caliber of professionals with the same types of education and experience without paying high salaries. For this reason, many U.S.-based software developers are being laid off and are struggling to find work.”
Tech is still feeling the real-life aftershocks of pandemic-era over-hiring, when companies were trying to meet the large demand and then started reducing the workforce to maximize profitability. If you’re worried about layoffs, Snipes advised you to consider upskilling in industries where cybersecurity and compliance are primary concerns, as those industries are less likely to outsource tech talent.
Finance
The finance sector, especially investment banking and fintech, is transforming in response to various factors, as it always seems to be hit by layoffs regularly. Factors such as economic uncertainty in volatility, investment risks and higher interest rates tend to be the root cause.
Layoffs are starting to feel more brutal in the Big Four than they ever have been for the job market for previous generations. However, an upside to this is having to land interviews faster because you have them on your resume.
John Lane, co-founder of Landing Point, said despite the periodic volatility in the industry, the year is projected to be active on the hiring front to support a strong equities market, increased mergers and acquisitions activity, enhanced investor inflows and a friendly regulatory environment.
Healthcare
Health is an essential product, and the healthcare industry has enjoyed stability over the years, but new and changing policies are threatening this.
Federal job cuts have impacted the Health and Human Services Department, as massive layoffs are happening. The administrative workforce has been hit with hundreds of layoffs across boards. While direct patient-care roles may not be cut, an increased workload is likely throughout the rest of this year and potentially into the next.
This is as a result of maximizing budget constraints, so supporting roles like accounting, billing and administrative are the first line of target.
Education
It can be surprising to learn that the education sector is battling layoffs. Educators and administrators alike are worried because teacher shortages have been making news for a while as teachers complain of being underpaid.
According to the Learning Policy Institute, teacher layoffs and shortages have always co-existed. Since funding for schools and educational institutions are usually allocated by the state and federal government, their withdrawal has led to budget cuts and downsizing of staff members.
Recently, the U.S. Department of Education made large cut-offs and terminated employee contracts following President Trump’s statement to have the department shut down. The laid-off employees were also informed they could appeal this decision.
Final Take To GO: Navigating Job Shortage and Layoff Anxiety
The bottom line is that if you’re in one of these industries, it’s fair to be concerned. However, as Gen Z is still considered the young people of the workforce, they are also still growing. So it’s good to remember that jobs aren’t necessarily disappearing; they’re evolving.
While there’s still some uncertainty on how far these layoffs could progress, and there’s no way to completely safeguard your career, make sure to stay proactive. Don’t wait for a layoff notice to start preparing. Keep your resume and LinkedIn updated and maintain a financial safety net. It is also important to consider a career pivot and explore freelance and temporary roles.
Caitlyn Moorhead contributed to the reporting for this article.
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This article originally appeared on GOBankingRates.com: Why It’s Been Hard for Gen Z To Get Jobs in Tech, Finance & More
