The workforce is already feeling the pressure from consistent layoffs. According to the Labor Statistics Bureau, or BLS, the situation isn’t surprising for American workers.
Updated numbers reveal that only 73,000 new jobs were created in July, while layoffs have also increased significantly, doubling compared to last year.
Analysis from a job site indicates that in July, job postings declined in several traditional sectors, including banking, finance, human resources, marketing, and software development.
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The latest job reports certainly highlight a market under pressure. Many job seekers have sensed a slowdown for some time now. It seems businesses are either postponing or completely halting their hiring plans.
This scenario is tied to a soft labor market, characterized by a lower demand for workers compared to those searching for jobs, which is leading to wage reductions and fewer employment opportunities.
Interestingly, the only sectors that are expanding are healthcare and social assistance. Though this area represents only 14.6% of overall employment, it has accounted for nearly 50% of job growth across the country this past year.
This isn’t particularly encouraging news for those on the job hunt, and with the rise of AI and concerns about a recession looming, it’s not surprising that new workplace trends are starting to appear.
Skills for the Crisis
A recent survey involving 2,000 full-time employees in the US and UK, conducted by Attensi in June and July, sheds light on this situation.
The findings suggest a “quiet crisis” in the workforce, with over half of respondents (58%) admitting to what they call “skill masking.”
What this means is that, in an effort to stay employed, many workers are intentionally concealing gaps in their knowledge and skills to avoid criticism or layoffs.
The survey reveals that nearly half (46%) of participants feel they lack understanding in their roles, and a significant number (40%) are hesitant to ask for help, even when they don’t know how to proceed. Surprisingly, another 51% felt they were well-suited for their positions.
This data points to a rise in anxiety about skill sets, particularly among younger employees. For instance, younger workers under the age of 45 often report heightened feelings of insecurity regarding their skills.
Turbulent Times
During times of economic and labor transformation, it’s natural for workers to want to present their best selves—even if that means pretending a bit.
A report from the American Psychological Association gives more context on how employees are navigating these changes and their feelings toward them.
According to the 2025 US Survey, 89% of respondents indicated that their companies have undergone some changes in the past year, with 26% noting that these were significant or transformative.
Additionally, 35% reported alterations in their job responsibilities and 30% observed changes in skill requirements.
Recent government policies have also played a role, impacting 65% of organizations surveyed. One in five workers (20%) claimed these policy shifts affected their workplaces significantly. The issues cited included budget cuts and the implications of tariffs for small businesses.
AI on the Rise
The report also emphasizes the swift integration of artificial intelligence in the work environment.
For those grappling with skill anxiety, generative AI tools may offer considerable relief. In fact, over two-thirds of respondents acknowledged that new technologies can enhance their work productivity (68%).
Furthermore, 60% reported that technological progress has created new opportunities within their current roles.
Only 28% believed that technological advancements were negatively impacting jobs—this is down from 36% from the previous year, pointing to a decreasing trend in negative perceptions surrounding AI.
AI tools are becoming valuable resources for employees, helping to refine resumes and application materials, create reports, and analyze data, among other tasks.
Thus, it’s not surprising that Attensi’s research revealed a growing recognition of AI in the workplace, alongside a willingness to adopt its use.
Almost half of the respondents have proactively tried to bridge knowledge gaps by acquiring new skills independently.
In fact, two-thirds (67%) expressed they are likely to employ AI-powered tools to enhance their job capabilities.
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