Despite decent growth at the beginning of 2025, the job market is looking quite uncertain right now. New CPI data showed that inflation heated up at the start of the year, increasing by 3% in January from a year ago, higher than the 2.9% forecast.

And with layoffs making headlines and inflation creeping up, many people are wondering: Is my job safe?

So, what’s actually going on? And what can you do to protect yourself?

Companies Cut Costs During Inflation and That Means Layoffs

Inflation raises the cost of pretty much everything. So, when businesses are struggling with higher expenses, they must look for ways to save money. And unfortunately, one of the quickest and most straightforward ways to do so is by reducing payroll costs.

According to outplacement services firm Challenger, Gray and Christmas, U.S. employers announced 172,017 job cuts in February — a 245% increase from the month before. It’s also the highest monthly total since July 2020, when 262,649 cuts were announced.

A big part of this workforce reduction comes from the federal government, where President Trump aims to shrink employment. Industries like tech, retail, and media also saw a good chunk of job cuts.

Hiring Freezes

If you’re looking for a new job, inflation might be making it tougher. Many companies that aren’t laying people off are simply not hiring. Job postings are down in certain sectors, and some businesses are only filling essential positions.

Remote work, once a major selling point, is also becoming harder to find as companies push employees back into offices to justify keeping commercial real estate. For example, companies like AT&T, Amazon, JPMorgan, and Toyota, are now all requiring employees to return to the office.

Wages are Struggling To Keep Up With Rising Costs

Even if you do have job security, inflation is making it harder for wages to keep up with the rising cost of living. Many workers feel like they’re making less money, even if their paycheck hasn’t changed because everything from groceries to rent is eating up more of their income.

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