Reports of a rocky job market and increased artificial intelligence (AI) use have given way to white-collar dread as the new year begins.

As the unemployment rate hit 4.4% in December, job outplacement firm Challenger, Gray & Christmas reported that employers across the U.S. had announced over 1.2 million job cuts in 2025 a 58% increase from the previous year (1).

Pessimism about keeping one’s job among educated workers has elevated. The Federal Reserve Bank of New York found in December those with a bachelor’s degree or higher put the probability of losing or leaving their job in the next 12 months at 15.2%, up two percentage points from a year ago (2).

“It’s a moment of intense uncertainty,” Sarah Rand told The Wall Street Journal in an article published Dec. 16 (3). She was laid off from her six-figure communications job at the University of Chicago in the spring. “I used to look at the job market as if I moved, I’d have the opportunity to level up. Now I’ll be lucky to stay the same.”

New college grads also seem to be feeling the pinch. A survey by Cengage Group found that only 30% of 2025 graduates had found a full-time job in their field by July, compared to 41% of the previous year’s class (4).

AI disruption and job interruption

Business leaders extolling the use of AI is likely adding fuel to the fire. At a conference in June, Ford CEO told the audience “literally half of all white-collar workers in the U.S.” would be replaced by the technology (5). As firms seek to shrink staff in favor of AI, and more profits, where does that leave human workers?

“Their worries are very understandable, given everything that is in the news,” Guy Berger, director of economic research at the Burning Glass Institute, told The Journal. “You know that if you’re laid off, you might be looking for a while.”

The average unemployment in the U.S. lasts around five and a half months, according to the Bureau of Labor Statistics. Given the current high cost of living, it’s understandable some workers might be holding onto their jobs for dear life.

“Staying put is what I feel is a safer choice,” James Wright told The Journal. According to the publication, he hopped between finance jobs in 2022 and 2023, but is now standing fast due to layoff fears.

As for AI, while he’s unsure of the technology’s trajectory, he acknowledges its potential to disrupt the workforce.

“If it keeps developing at the pace it is, a lot of different jobs, my job included, could go away,” he said.

‍

Read full article here