US Layoffs Rise: Essential Tips for Financial Prep

Recent revisions in US payrolls suggest a decline in job stability, as 88,000 jobs were cut for the year ending March 2024. With an anticipated rate cut this fall, uncertainty surrounds the labor market, exacerbated by a survey indicating that 70% of employees fear layoffs. During a discussion on managing these concerns, investment advisor Blair Duan emphasized the importance of financial preparedness. He recommended maintaining a cash reserve covering three to six months of living expenses, advising against investing these savings in the market or locking them in CDs. Duan noted that economic downturns typically affect all sectors, though past over-hiring in specific industries like technology may face higher layoffs. Even with a relatively low unemployment rate, Duan encourages job seekers to leverage personal networks rather than rely solely on online job postings to stand out. Ultimately, while the market may be softening, the current economic situation presents an opportune chance for those laid off to find new employment quickly.