Hey everyone, it’s Sergio. Let’s skip the pleasantries. If you are worried about unemployment amid a slumping economy and AI distruption, you are not alone. Right now, losing your job isn’t just an inconvenience, it could be a financial crisis.
According to Bureau of Labor Statistics data, it takes approximately 24.5 weeks (roughly 6 months) for the average unemployed worker to find a new job, a 16.7% increase from just one year ago.
And the conditions stacking up in 2026 are making that risk more real for more people than at any point in recent memory.
25.7% of unemployed workers, nearly 2 million Americans, have now been jobless for 27 weeks or longer, the highest share since early 2022.
How can you put yourself in a position to get ahead, even if you get laid off? Keep reading and I’ll share some of my observations and learnings from years prior.
A Company Will Drop You If They Can Save a Dime
Companies are being squeezed from both ends, rising operating costs and weaker consumer spending are forcing executives to get leaner fast. And when leadership has to choose between your salary and their quarterly earnings report, you already know which one wins.
Don’t take it personally, take it seriously. This is just the reality of how publicly traded companies, and even private ones, operate. When costs climb and investors get nervous, the fastest line item to cut is headcount.
Look no further than what just happened at Block, the fintech giant behind Square and Cash App. In February 2026, CEO Jack Dorsey announced the elimination of roughly 4,000 jobs, approximately 40% of the company’s entire workforce.
Here’s the part that should catch your attention: Block was already profitable. It wasn’t in financial distress. Dorsey framed it plainly in his shareholder letter: “A significantly smaller team, using the tools we’re building, can do more and do it better.”
When the announcement dropped, Block’s stock surged more than 20% after hours. The market rewarded the decision. Investors cheered 4,000 people losing their jobs because it meant better margins.
That’s the calculus companies are running right now. AI isn’t just disrupting jobs, it’s giving executives a clean, investor-approved justification to restructure headcount they were already looking to reduce.
And Then There’s the War
The economic anxiety doesn’t stop at the office.
The conflict between the U.S. and Iran is sending real shockwaves through global markets. Oil prices surged 25% overnight in early March, pushing U.S. crude to just below $91 per barrel, the largest weekly gain recorded since 1983.
The conflict has already disrupted close to a fifth of global crude oil and natural gas supply. JP Morgan analysts noted the market is “transitioning from assessing pure geopolitical risk to confronting actual operational disruptions.”
That spike translates directly to higher gas prices, higher shipping costs, and more inflation pressure for businesses and consumers alike.
Recession odds have nearly doubled this month, and markets from Tokyo to Seoul are already reacting with steep sell-offs. When businesses face rising costs and uncertain revenue, they protect margins, and that means more layoffs are likely on the way across industries.
How to Protect Yourself Before It’s Too Late
You can’t control the economy, the war, or what your CEO decides to appease shareholders. But you can control how exposed you are when the next round of cuts gets announced. Here’s what matters right now:
Keep your resume current and your network active: Don’t wait until you’re job hunting to update your LinkedIn or reconnect with former colleagues.
Opportunities come through relationships, not job boards, especially in a market where AI is flooding applications portals with noise. Make it a habit to nurture connections in your field consistently, not desperately.
Learn the tools that are replacing people around you: The workers who survive restructuring aren’t the ones who ignore AI. They’re the ones who use it better than anyone on their team.
The more you understand how to do the work of two people using the tools available, the more indispensable you become. Whether it’s AI writing tools, automation software, or data platforms specific to your industry, get fluent now.
Build income outside your 9-to-5: A single source of income is a single point of failure. Freelancing, consulting, content creation, reselling, any side hustle that generates real revenue gives you a cushion and keeps your skills sharp. Even a few hundred dollars a month in outside income can be the difference between weathering a layoff and a financial emergency.
Be strategic about frivolous and large purchases: Now is the worst time for frivolous and expensive purchases. Thinking about buying a boat? Hold off. You don’t really need it. Thinking about ordering in when you have a fridge full of groceries? Just put the chicken in the pan.
But don’t put your blinders on entirely. For instance, if you’ve been saving to buy a home, pay attention right now. Some of the people who built the most wealth coming out of the 2008 financial crisis weren’t the ones who avoided the downturn.
They were the ones who bought when everyone else was scared. If you’ve been building toward a home purchase and have solid savings, a stable income, and a long-term view, a period of economic uncertainty can actually work in your favor. Home prices tend to soften when buyer confidence drops. Interest rates may adjust. The people who are financially prepared when others are not are the ones who look back on downturns as turning points.
Put that extra income to work: If you’re generating side income, don’t let it sit idle. Invest it consistently into a broad-market index fund or a low-cost ETF, S&P 500 index funds, total market funds, or something like VTI or VOO.
You don’t need to pick stocks or time the market. Steady, automatic contributions build wealth over time and create a financial buffer that your employer can’t touch.
The Bottom Line
The economy is under real pressure, companies are leaner than ever and getting leaner still, and AI is giving leadership the cover to make moves they’ve wanted to make for years. The workers who will come out ahead aren’t the ones who hope nothing changes, they’re the ones who got ready before it did.
