Layoff anxiety is rising, and it’s more than just a fleeting fear. For many, it’s uncertainty about finances, purpose and what’s next. Rather than seeing this as a dead end, it can become a surprising source of creativity, courage and change.
Whether you’re navigating leadership shifts, industry cutbacks or personal job insecurity, here’s how to use that stress as a signal and spark something new.
Acknowledge the Fear and Channel It
The fear of layoffs can cause real distress, from sleepless nights to burnout. However, fear also sharpens focus. Anxiety and stress can heighten awareness and drive creative thinking, especially when channeled into something tangible, like change.
By naming the fear instead of avoiding it, you give yourself a chance to act, not just react. Redirect your attention to something you can control, like refining a skill, building a side project or even revisiting career goals with fresh eyes.
Reframe the Number Narrative
Knowing you’re not alone helps. In New Zealand, the underutilisation rate rose from 9.2% in 2021 to 12.3% in 2024. Instead of unemployment, the term “underutilisation” hints at a larger truth that many people aren’t jobless – they’re just underused. If you have the foresight to see this, it paves the way for opportunity.
Industries like media, construction and the public sector have been hardest hit. However, this also means skilled people are being freed up to do something different. If you’re underused, it may be time to explore or create a new path.
Create Safety and Support Inside Your Current Role
If you’re in a leadership position, note that job insecurity makes workers more likely to jump ship. People feel anxious about layoffs and are then quicker to leave for better roles that offer stable income or job security. While your company may have to engage in a few layoffs, having skilled people quit isn’t how you balance the workforce – it just gives your business a high turnover rate, which is never good.
If you’re in management, you can take a few simple steps to build loyalty and retain qualified staff during the recession, by:
- Providing clarity around what’s changing and what’s staying the same.
- Allowing time for team members to process what’s changing and adjust to big shifts.
- Encouraging breaks to reduce burnout and boost morale.
- Offering catered meals or healthy snacks to foster a sense of community and help staff who are quietly skipping meals to save money due to salary cuts.
Turn the Pressure Into Creative Momentum
It may sound odd, but some of the best ideas are born in chaos – you need it to shake you out of the place you’ve been comfortable so you will embrace change. When your routine is upended or your future feels shaky, you’re more likely to consider new options, and that’s where innovation lives.
Use this time to test ideas you’ve shelved, collaborate with others in your network and consider how your current skills might apply in another sector. Explore part-time, freelance or consulting work to bridge the gap in earnings if you have to take a pay cut. Pressure can paralyse or propel – choose the latter.
Tap in to Local Support
No one should navigate uncertainty alone. Thankfully, New Zealand has plenty of employment, wellbeing and business support programmes to help with transitions. Local job centres, upskilling initiatives and mental health services can all offer a safety net or a springboard.
Some government platforms help you reassess your skills for job ideas if you need to make a career change, and the free coaching helps develop resilience in dynamic employment markets so you can move forward with personal clarity.
Possibility Awaits
Layoff anxiety is real, but it doesn’t have to be a dead end. It might just be the spark that gets you moving in a new direction you hadn’t considered. Whether that means rethinking how you work, who you work with or what lights you up again, fear can be your guide if you channel it positively.
You’re not just anxious – you’re adapting, and that’s where innovation begins.
