America’s uneasy job market: Why worker confidence is crumbling amid layoffs and shutdowns

The hum of America’s labor engine, once symbolic of resilience after the pandemic, is beginning to falter. October’s numbers told a story few wanted to hear: Companies announced 153,074 layoffs, bringing the year’s total to over 1.1 million, according to data from outplacement firm Challenger, Gray & Christmas.

CNBC reported that this marks the worst year for layoff announcements since 2009, a chilling echo of the Great Recession.Yet, despite the staggering totals, economists caution that these headline figures can mask complexities. The Challenger dataset, while respected, often fluctuates month to month. Moreover, the wave of announced layoffs hasn’t fully translated into state-level unemployment claims, which remain relatively stable even as the government shutdown delays official labor data.

The contradiction captures a market in limbo, uncertain, tense, and acutely aware that stability is no longer guaranteed.

Worker sentiment takes a hit

While economists aren’t sounding the alarm for a recession just yet, the psychological toll on the workforce is becoming unmistakable. A growing unease is rippling through offices, factories, and digital workplaces alike. Glassdoor’s October data reveals that reviews mentioning layoffs are up 22% year-over-year, a striking metric of collective anxiety.

Meanwhile, worker confidence has tumbled close to its lowest point since June 2025.The decline is particularly sharp among senior professionals, those who, by virtue of position and influence, typically set the tone for workplace morale. Confidence among senior-level employees has dropped 4.6 percentage points since October 2024. That’s concerning since leadership confidence spreads to other employees through hiring and investment plans.

If senior leaders aren’t confident their business is doing well, they could decide to reduce hiring or lay people off, Zhao says,” says Zhao, a labor market analyst cited by CNBC.This erosion of confidence isn’t just emotional, it’s structural. Fewer job seekers report receiving multiple offers, and even fewer feel empowered to decline one. The data suggests workers are settling rather than negotiating, a marked reversal from the high-demand labor market of just two years ago.

Healthcare emerges as an anchor sector

Amid the turmoil, the healthcare industry stands as a rare source of stability. According to Indeed’s job posting data, openings across the board have dropped to their lowest since 2021. Yet, healthcare, along with private education, security, and engineering, continues to expand. Together, health care and private education account for roughly 17% of national employment, yet they’ve fueled 56% of job growth between July 2023 and July 2025, according to CNBC.The geography of opportunity has also shifted. Regions like Washington, DC, heavily affected by the government shutdown, and California and Washington state, still reeling from tech layoffs, have seen steep declines in openings. Meanwhile, hospitals, nursing facilities, and educational institutions are hiring, a reminder that essential sectors often shoulder the weight of economic downturns.

The bigger picture: A job market ‘in a funk’

With the Bureau of Labor Statistics unable to release its latest employment report due to the government shutdown, economists are left to read between the lines.

The last available figure, a 4.3% unemployment rate in August, painted a picture of steadiness. Yet, projections by Dow Jones economists suggested that the missing report might have revealed a loss of 60,000 jobs and a modest rise in unemployment to 4.5%.For many hiring experts, these numbers confirm what they already sense: the market’s rhythm is offbeat. Recruiters are advising job seekers to adapt strategically.

Confidence as the new currency

What America faces today isn’t just an employment challenge; it’s a crisis of confidence. The economy may not be in recession, but workers are behaving as though one looms on the horizon. Corporate leaders, meanwhile, are tightening budgets, hesitant to invest or hire aggressively amid uncertainty.For now, the job market remains afloat, thanks largely to healthcare and education. But beneath the surface, the undercurrents of doubt are strong. A decade ago, layoffs symbolized corporate failure; today, they reflect systemic caution.