Employers must tackle rising workplace stress driven by job insecurity, the American Psychological Association has warned, as new research links policy changes and economic uncertainty to poor mental health and organisational risk.
Employers must adopt proactive strategies to reduce workplace stress driven by job insecurity, according to the American Psychological Association (APA), which warns of a growing mental health burden on the workforce.
The organisation’s 2025 Work in America™ survey found that a majority of US workers (54%) said job insecurity had significantly impacted their stress levels, with more than a third (39%) expressing concern they may lose their jobs in the next year due to changes in government policy.
The report, based on a survey of more than 2,000 US workers conducted by The Harris Poll between 26 March and 4 April 2025, highlights the toll of geopolitical instability and economic uncertainty on staff wellbeing.
“When people feel their jobs are at risk, it creates a sense of uncertainty that can affect every aspect of their lives,” said Arthur Evans Jr, APA’s chief executive officer. “This cultural moment is threatening workers’ sense of stability, control and ability to meet their basic needs. And feelings of insecurity at work and poor mental health can amplify each other in a vicious cycle.”
A vicious cycle of insecurity and stress
According to the APA, recent government policy changes, wider economic concerns and ongoing instability have created ripple effects throughout the workforce. Around two-thirds of employed adults (65%) said their organisation had been affected by such changes.
Workers whose employers had experienced government-related disruption were significantly more likely to report negative outcomes, including emotional exhaustion, lack of energy and difficulty concentrating.
Nearly one in three said they had experienced a lack of motivation or energy, while around one in four cited emotional exhaustion or an inability to focus.
Among those reporting that their organisation had been fundamentally altered by government policy, 70% said job insecurity had significantly increased their stress levels, compared with just 39% whose employers had not been affected.
Economic fears and job market pressures
The survey also found that more than half of workers (51%) believe it would take them a long time to find another job if made redundant. Among those who feared job loss due to government policy, two-thirds (66%) said they would struggle to find work quickly.
Many workers were concerned they would need to change industries entirely in order to find employment. More than two in five (44%) said they would need to switch sectors if they lost their current job.
“Economic uncertainty appeared to have played a major role in workers’ concerns about job security,” the report explained. “More than two in five employed adults (44%) said they were concerned that an economic slump, downturn or recession could lead to being laid off, furloughed or having their job eliminated within the year. This represented a notable increase from 2024, when only 36% expressed the same concern.”
These anxieties have already begun to affect workers’ private lives. Among those concerned about job security due to a possible downturn, 42% reported sleep difficulties, and 36% said their personal relationships were suffering.
“In recent years, awareness has grown around the profound impact the workplace has on people’s mental health,” said Evans.
“This year’s survey makes one thing clear: unmanaged stress is not just a personal health issue – it’s a critical organisational risk, contributing to lower productivity and higher turnover.
Employers have a responsibility to go beyond awareness and invest in evidence-based strategies that promote workers’ psychological well-being. At the same time, employees must recognize the importance of prioritizing their mental health and be empowered with the skills and support to do so.”
What can employers do?
Dr Dennis Stolle, APA’s head of applied psychology, told StrategicRISK there was much employers could and should do to reduce staff insecurity and the stress it causes.
“The best way for employers to support staff and reduce feelings of job insecurity is with a proactive, transparent, organisational approach that fosters trust and resilience,” she said.
She outlined a range of strategies backed by psychological science, including:
- Fostering a culture of psychological safety, where employees feel comfortable sharing concerns without fear of retribution
- Transparent communication from management about changes, goals and expectations to reduce uncertainty
- Inclusive decision-making, giving employees agency in shaping their roles and environment
- Career development opportunities such as upskilling, mentorship and internal mobility
- Financial wellness resources, including budgeting and investment guidance through employee assistance programme
“By embedding these practices into their operations, organisations can reduce stress-related risks and build a more engaged, stable workforce,” she added.
Embedding resilience through better management
Stolle said safeguarding mental health should be viewed as a core risk management strategy.
“Protecting psychological well-being is essential for managing organisational risk and sustaining long-term employee engagement, retention, and performance,” he explained. “Companies can help safeguard worker well-being through an organisational approach.”
Key evidence-based practices include:
- Training managers to spot early signs of distress and respond with empathy – not to act as therapists, but to avoid contributing to stress and insecurity
- Normalising open dialogue around mental health to reduce stigma and encourage help-seeking
- Offering flexible work arrangements and ensuring workloads are manageable
- Providing access to confidential support services, including licensed psychologists
- Auditing workplace policies and practices to address systemic sources of stress
“These strategies not only protect employees but also enhance organisational resilience, reduce turnover, and support long-term success,” Stolle concluded.
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