How to Reduce Labor Market Anxiety in Your Workforce

Economic uncertainty dominates recent headlines. Employees are grappling with rising anxiety over layoffs, job security, and financial stability, sometimes leading to visible signs of emotional overload. This expression of frustration symbolizes how deeply economic fears affect the workforce, while productivity losses show the impact of employees’ financial stress.

Optimism among U.S. workers remains near record low, with only 47% expressing some degree of optimism about the future of the U.S. labor market — down sharply from 61% in January 2025, according to SHRM’s April Current Events Pulse survey. And it’s not just optimism about the future that’s eroding. Nearly half of U.S. workers said the current state of the economy has negatively impacted their mental health, putting both personal well-being and employee retention at risk. 

While employers may be focused on navigating business challenges, it’s equally critical that they recognize and respond to the emotional toll economic uncertainty is taking on their people. Here is how they can tackle both challenges together.

Dust Off the Resources

During moments like this, employees may experience a range of emotions around the economy, including fear and insecurity, and may not be able to recall all the resources available to them. Employers need to step in to highlight what is available, encouraging their employees to make use of total rewards.

• Resurrect those splashy campaigns from open enrollment to inform employees about benefits that reduce financial stress, such as financial advisory services or budgeting tools.
• Add more webinars and programs aimed at mental health from total rewards partners to expand opportunities for employee engagement.
• Regularly bring mental health information to your employees’ attention, including services provided by your Employee Assistance Program partner and easy ways to find in-network mental health providers.

SHRM Members-Only Content: A Guide to Advanced Mental Health Benefits at Work

Bring Transparency to Teams

Over 1 in 3 (36%) U.S. workers said the state of the economy had a negative impact on their sense of job security, according to the same survey. Even if employers feel their organization is equipped to face what’s ahead, employees may still feel unmoored.

• Schedule town halls or ad hoc webinars to share key updates about the state of the business.
• Be upfront about changes to goals or milestones so employees know what to expect. Acknowledging the realities of the economy while showing a plan for progress can help balance out all the scary headlines.
• People managers have enormous influence over both mental health and organizational success so empower them to support employees.

The path ahead might be uncertain, but employers have an essential role in helping their people navigate it. Even if employees aren’t making the final business decisions, they feel the weight of economic uncertainty just as heavily. By leading with transparency and communication, employers can ease anxiety, strengthen trust, and build a strong, resilient workforce — one ready to weather the storm together.