Powell tells students to be optimistic about the U.S. job market and AI
U.S. Federal Reserve Chairman Jerome Powell told Harvard Economics students on Monday (March 30) that he is optimistic about the medium- to long-term employment prospects for U.S. college graduates, despite the current period of very low job creation because the U.S. economy is the most dynamic and productive in the world.
One of the few things that will be more stressful than looking for a job in 2026 may be trying to keep one, new research suggests.
After a year of weak growth, the labor market is showing signs of regaining momentum. The Department of Labor estimated that U.S. employers added 115,000 jobs in April and 185,000 jobs in March. But each month, employment remains concentrated in specific areas such as health care and social assistance. Workers outside these industries are holding on to their jobs for fear of not finding another job amid widespread AI adoption, a wave of layoffs, and economic uncertainty that may prompt employers to cut back on hiring.
Trying to secure a job in such an environment can feel daunting. According to the Resume Genius report, which details the results of a survey of 1,000 job seekers conducted by Pollfish, 49% of people looking for work say their job search has had a negative impact on their mental health.
But if employees continue to work in roles they don’t enjoy, their health can take a toll. According to the Monster Report, a survey of 1,000 U.S. employed workers also conducted by Paul Fish, 59% said their job negatively impacts their mental health at least monthly.
Some Americans are affected by both, fearing being fired from jobs they hate and worrying about their future prospects in today’s job market. JoAnn, 55, from Pennsylvania, who asked that her last name not be used for fear of it affecting her ability to get a new job, has been fired four times in the past 30 years and worries it will happen again as her company implements AI tools. I heard whispers that her department might be disbanded by next year.
“I’ve been to different states. I’ve used recruiters. I’ve used resume writers. I’ve met headhunters. I’ve met more headhunters than I can count. And the jobs they keep sending me saying, ‘You’re qualified,’ now pay $14 an hour if you’re lucky,” she said, adding that she was surprised that her experience in IT, technology, insurance and criminal law didn’t make her more valuable to employers. “I can’t pay my bills on $14 an hour.”
How does job stress affect workers?
A Monster survey found that 46% of workers report experiencing burnout. Employees said the biggest causes of stress were increased workloads and understaffing, followed by poor management, struggles with work-life balance, and workplace conflicts and drama. Approximately one-quarter of respondents said that low wages and concerns about being fired were also a factor.
“We’re not going to increase headcount, but we’re not only expecting you to keep your job and do well, but we’re also going to give you a 30% increase in workload at the same rate,” Monster Career expert Vicky Salemi said, adding that workers will take on more responsibility after their colleagues are laid off.
Nationally, turnover rates are relatively low, hovering around 2%, but Salemi says employers shouldn’t take high retention rates as evidence that employees are satisfied. The report added that 71% of workers admitted to continuing to work in jobs they knew were “harmful”.
“Having an unhappy workforce ultimately doesn’t help the bottom line,” Salemi said, adding that worker burnout could lead to mistakes and lower productivity if companies don’t take action.
What is causing stress to job seekers?
The grass isn’t always greener on the other side.
According to a report by Resume Genius, nearly half of job seekers say their job search has had a negative impact on their mental health, with 55% saying they don’t hear back after applying, 44% saying they don’t hear back after an interview, and 24% feeling frustrated by automated or AI-generated rejection messages.
Lisa Countryman Quiroz, national workforce expert at JVS, a professional training and coaching nonprofit, said job seekers who have been working in the professional world for more than a few years are experiencing a pendulum shift. The period of 2021 and 2022, when workers voluntarily quit their jobs, known as the “Great Resignations,” is over, mandates to return to the office are back, and competition isn’t just from other workers. A whopping 80% of job seekers surveyed said they were worried about jobs in their field being replaced by AI.
“Not only do workers have no power, but many obvious benefits are being canceled,” Compatriot Quiroz said. “And now, in some ways, in a broader sense, the promise of what opportunities are available to you is much murky.”
What to do if you feel stuck at work
Salemi said workers experiencing burnout should first try to understand whether their job is actually contributing to their poor mental health.
“Do you feel like you have a pit in your stomach on a Sunday night?” He added that workers may be worried about being yelled at, not being recognized for their work, not being able to manage their workload alone, being underpaid, or worrying about how they will be treated if they ask to take mental health leave.
For those who answer yes to these questions, she advises identifying the underlying reasons. If an employee has a problem with their boss, she said, they may try to change departments or roles within the company. If it’s a culture-wide issue, it may be time to update your resume, she says, adding that it’s best to have a backup plan or a solid savings cushion in place before quitting.
What to do if you feel stressed during job hunting
Career experts recommend communities to job seekers struggling with their search, including communities that connect people in similar situations and nonprofits focused on helping people navigate the job market.
“There are training programs available for free,” Compatriot Quiroz said. “Utilize available resources and leverage social support to ensure you maintain the energy and motivation to successfully navigate the process.”
Both she and Salemi recommend seeking professional counseling if the job search is seriously impacting a job seeker’s mental health. Salemi says simple things like recognizing that your situation is temporary and engaging in physical activity like yoga or meditation can help.
Side jobs and seasonal work can be a source of income to help bridge the gap with a full-time job, she added.
How to talk to your boss about your mental health
Joanne, who suffers from complex post-traumatic stress disorder, says she doesn’t feel comfortable telling her current employer about her diagnosis. She said she had asked for accommodations from her former employer in the past, but was denied because she was deemed “too high-functioning.”
“There’s a lot of stigma around PTSD, and I’m not one of them,” Joanne said, adding that while many people associate PTSD with veterans or mass shootings, her trauma stemmed from her childhood. “I don’t want that to affect whether they want to keep me or not.”
she is not alone. Of those surveyed by Monster, 37% said they felt they would face negative consequences if they were not honest about their mental health at work. Salemi suggests that employees carefully structure their conversations with their managers.
He said that rather than pointing to burnout, workers should focus on how they accomplished their current responsibilities and may want to redirect to another role that offers more learning opportunities.
“Instead of thinking, ‘Oh my God, this job is going to kill me,’ especially with the same employer and even with a new employer, make it more role-centered,” Salemi says.
“Having a clear picture of your own skills, preferences and growth opportunities is a very good basis for starting a conversation with your manager. You can get results without necessarily having a direct conversation about your mental health,” Compatriot Quiroz said. “Start the conversation in a way that clearly benefits you, but also benefits the company. Then your manager will be more open to exploring.”
Contact Rachel Barber rbarber@usatoday.comFollow her on X @rachelbarber_and subscribe to her newsletter Making More of Your Money here.
