Layoffs often continue to affect workers long after their final day at a company. For our 2026 Human Impact of Layoffs Report, Resume Genius surveyed 1,000 U.S. workers who have experienced a layoff in the past two years to examine how job loss affects financial stability, mental health, the search for new work, and the compromises workers make to return to the workforce.
Methodology: Survey of 1,000 laid-off U.S. workers
Resume Genius partnered with Pollfish to survey 1,000 U.S. workers on July 29, 2026. Respondents were between the ages of 18 and 64 and had involuntarily left a job because of company downsizing, restructuring, or budget cuts within the previous two years. Of the respondents, 39% had been laid off within the past six months, 31% from half a year to one year ago, and 30% between one and two years from the time of the survey.
Resume Genius analyzed responses overall and by age group and former employer industry. Generational comparisons included Gen Z, ages 18–29 (n=260); Millennials, ages 30–45 (n=506); and Gen X, ages 46–61 (n=214). The 20 respondents ages 62–64 were included in overall results but excluded from generational comparisons because the subgroup was too small to support reliable comparisons.
Percentages were weighted using Pollfish respondent weights and rounded to the nearest whole number. Totals for questions allowing multiple responses may exceed 100%, and findings based on smaller industry groups should be interpreted with additional caution.
- 43% of laid-off workers say their mental health is worse than before the layoff, including 15% who say it is much worse
- 34% have already drained most or all of their savings
- 50% would claim they resigned rather than admitting they were laid off, rising to 61% among Gen Z
- 40% applied for at least 50 jobs after being laid off
- 21% had not found a new job at the time of the survey
- 65% of workers who found new jobs after their layoff had to take a pay cut
- 92% would accept at least one major compromise (a pay cut, less PTO, etc.) to return to work sooner
Layoffs are eating into workers’ financial safety nets
A lost paycheck can have a ripple effect across a worker’s finances, dwindling their savings and forcing cutbacks on everyday expenses.
1 in 3 workers drained most or all of their savings
The financial impact extended across savings, debt, and workers’ reliance on others for support.
- 34% of laid-off workers drained most or all of their savings before finding their next job.
- 26% took on debt to cover expenses.
- 24% relied financially on family, a partner, or friends, including:
- 31% of Gen Z.
- 25% of Millennials.
- 19% of Gen X.
- 10% maintained financial stability with minimal disruption.
- Only 6% said their financial situation improved following the layoff.
The impact was especially pronounced among workers laid off from manufacturing, engineering, and construction jobs: 42% burned through most or all of their savings, compared with just 26% of finance workers.
Layoffs are forcing workers to cut basic expenses
Financial pressure also affected basic expenses and longer-term financial planning.
- 32% of workers missed or delayed payments on utilities, credit cards, loans, or other bills after being laid off.
- 30% reduced spending on necessities such as food or healthcare.
- 26% missed or delayed a rent or mortgage payment.
- 15% paused retirement or other long-term savings.
- 15% cashed out or borrowed against retirement savings.
For many workers, the emotional impact continued after a layoff
Emotional turmoil regularly persisted beyond the initial shock of being laid off, with some workers reporting long-term consequences on their mental health.
Mental health remains worse for more than 4 in 10 workers
While the longer-term emotional effect of getting laid off varied, more workers reported their mental health declining rather than improving.
| Mental health compared with before layoff | % | Percentage | |
|---|---|---|---|
| Much worse | 14.9% | 15 | |
| Somewhat worse | 27.7% | 28 | |
| About the same | 31.7% | 32 | |
| Improved | 25.7% | 26 |
- 15% of workers said their mental health was much worse following their layoff.
- 28% said their mental health was only somewhat worse.
- 32% said it remained about the same.
- 26% said their mental health had improved.
Anxiety is the most common reaction to a layoff
Workers’ immediate reactions were predominantly negative, with anxiety and shock reported most often.
- 49% felt anxious or fearful about the future after their layoff.
- 41% felt shocked or blindsided.
- 37% felt angry about how the situation was handled.
- 14% felt relieved because they had already wanted to leave.
Layoff stigma is shaping the job search
Layoffs also shaped how workers described their departure and their experience of the job search.
Over one third of laid-off workers are concerned they’re less desirable job candidates now
Being laid off was more often seen as a disadvantage than a source of sympathy during the job search.
- 36% believe being laid off made them look less desirable as a candidate.
- 25% think it made recruiters more sympathetic or understanding.
- 29% don’t think the layoff affected how potential employers perceived them.
- 10% were unsure.
Negative perceptions were especially common among former technology workers:
- 48% of laid-off technology workers believe the experience made them look less desirable to potential employers.
- 26% of workers in manufacturing, engineering, and construction said the same.
Half of laid-off workers claim ‘they quit’ when asked
Half of laid-off workers (50%) have told someone in their lives that they resigned or left voluntarily when they had actually been laid off.
- 24% have concealed their layoff more than once, while 26% have only done so once.
- 28% said they had always been upfront about what happened.
NOTE: The question covered conversations with friends, family members, and interviewers, so the finding does not mean half of respondents specifically misled potential employers.
Gen Z is most likely to conceal a layoff
Gen Z respondents were the most likely to lie about being laid off to others: 61% have claimed they resigned, compared with 50% of Millennials and 44% of Gen X workers.
- A further 21% of workers have considered concealing their layoff, including:
- 24% of Gen Z.
- 22% of Millennials.
- 17% of Gen X.
- 28% of workers had always been upfront and never considered hiding their layoff, including:
- 14% of Gen Z.
- 29% of Millennials.
- 39% of Gen X.
The post-layoff job search becomes a numbers game
Application volume was high for a substantial share of workers, with some submitting hundreds of applications during their post-layoff search.
- 40% applied for at least 50 jobs after being laid off.
- 15% submitted 150 or more applications.
- 5% applied for more than 300 roles.
Employer silence can stretch for months after a layoff
Long gaps without employer responses were common during the post-layoff job search.
- 25% went at least one month without hearing from an employer or recruiter.
- 13% went more than two months without a response.
- 21% had not found new employment at the time of the survey, including:
- 28% of workers laid off within the previous six months.
- 17% of those laid off 7–12 months ago.
- 15% of those laid off 13–24 months from the time of the survey.
Workers are making major compromises to return to employment
Once an opportunity arrives, many workers feel pressure to compromise on pay or other benefits for a faster return to the workforce.
2 in 3 workers feel financially unable to hold out for a better offer
The survey also measured how much pressure workers feel to accept the first offer they get.
- 34% feel a great deal of pressure.
- 33% feel a fair amount of pressure.
- 22% feel at least a little pressure.
- 9% feel no pressure at all.
Most laid-off workers accept their next role with lower pay
Pay was an area where re-employed workers often compromised.
- 41% took a slight pay cut.
- 24% took a significant pay cut.
- Only 13% of laid-off workers earned more in their next job than they were originally making.
Almost everyone would accept a compromise to return to work sooner
People were also willing to trade flexibility, seniority, or job fit to shorten the path back to employment.
What laid-off workers would do to get back into the workforce:
- Take a role outside their field or industry if the opportunity arose (45%).
- Accept a lower salary (40%).
- Accept a short-term, contract, or temporary position (35%).
- Accept a more junior title (35%).
- Relocate or accept a longer commute (28%).
- Return fully on-site after previously working remotely or on a hybrid schedule (23%).
- Consider under-the-table, cash-only work (18%).
Only 8% of respondents would reject every previously listed compromise and wait for the role that met all of their specifications.
Conclusion
The findings show that the effects of a layoff can continue long after employment ends. Many workers report depleted savings, disrupted essential spending, worse mental health, and discomfort around how to explain their departure to others.
Financial and emotional pressures also carry into the job search. Many laid-off workers submit large numbers of applications, feel pressure to accept the first offer they receive, and return to work for lower pay or under less favorable conditions than before.
For job seekers, recovering from a layoff means more than simply finding another role. Protecting financial stability, maintaining confidence during a difficult search, and presenting the experience clearly to employers can all play an important part in moving forward. For employers, the findings underline how deeply a layoff can affect workers beyond their final day on the job.
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About the Author
Jack Hulatt graduated from the University of Greenwich with a bachelor’s degree in Politics and International Relations before pursuing certifications in computer science and data analytics. In his short career, he has already worked on multiple entrepreneurial projects and as part of a larger team, giving him direct insight into the needs and wants of young job seekers today.
