DavidIf you’ve noticed a recent spike in layoffs this year, you’re not mistaken. And if you are someone who did get laid off, don’t worry. You’re one of millions.
In 2025 alone, layoff rates have been among the highest the U.S. has ever seen. In fact, according to USAFacts, approximately 10 million people have been laid off or discharged this year. Of those individuals, 1.6 million of them were laid off in June, which is 3.5% higher than the same period in 2024.
The staggering numbers in mind, you might be asking yourself, why is this so? Let’s break it down.
Across the U.S. labor market, layoff culture has always been a constant. When you think of instances like the Great Recession back in 2007-2009, increases in layoffs often happen when there is an economic disruption or a need to restructure a company’s current system. In more recent years, layoffs have been particularly elevated, primarily due to external forces like the rise in artificial intelligence and corporate slowdowns.
In a world where money affects every part of life, being laid off carries weight far beyond losing the job title itself. With it comes intense feelings of financial stress and emotional strain, also forcing the need to assess your financial situation.
The power of financial consciousness
So when a job is suddenly taken away from you, what happens with your money?
Like financial expert Michael A. Scarpati, CEO of RetireUS suggests, it’s time for a financial reality check.
“Layoffs are becoming normal in today’s age, and I’ve seen it happen many times, especially with government workers. When your income stops, you suddenly have to confront your spending behaviors that may have gone unchecked for years,” he says.
In other words, when uncertainty like job loss strikes, what people need is a shift in mindset. That does not just mean learning to budget better, but planning with intention so that your financial health can remain intact.
“Practicing financial consciousness in this instance forces you to re-evaluate what matters in order to support your long-term stability. While job loss can feel overwhelming, it can also become a positive turning point for your financial health,” Scarpati explains.
By being financially conscious, it also means taking initiative of your money. It involves understanding where the money flows, taking proactive measures to save, setting long-term goals, and being flexible to adjust your spending habits. Essentially, it’s about taking control of your financial life so that you can make informed decisions that will support your well-being.
Without a solid understanding of your finances, individuals might struggle with a number of implications, such as the inability to manage debt, overspending, lack of security, or missed financial opportunities.
Much of the problem is also an absence in the system. Across the U.S., only about 27% of adults consider themselves financially competent. That means the majority of Americans are navigating these challenges with little guidance or preparedness.
Why this matters
There is no doubt that we are living in a period of economic tragedy. Job loss is increasing, market prices are souring, and people are losing hope. If current trends continue, economists likely predict another wave of the recession on the horizon. Couple that with the rest of today’s surrounding pressures, and it’s almost impossible to not feel the tension.
But despite that all, not all layoffs are a bad sign. If anything, for many people, it becomes a forced opportunity to pause and reinvent the wheel for our futures. Career pivots, new ventures, or a return to school are often born out of job loss. All that with the right financial strategy, and layoff culture can actually become a moment of resilience.
If you can act with financial consciousness, you have the power to move your life in another direction. Because when all else fails, it’s the meaningful impact that can make the obvious difference.
Fearful you might be next to lose your job? Fret not—your financial plan is waiting for you.