Unemployment numbers are still low, but according to CNBC, recent surveys show as many as half of large employers are thinking about cutting jobs in 2023 as the economy is expected to slow.
In fact, we're already seeing people being laid off from their jobs in certain industries, like tech.
If you suddenly find yourself with a pink slip, figuring out what to do can be stressful and confusing.
So we sat down with two people who have been through it and now offer advice to others about the best ways to prepare.
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Kevin Thompson, from Danielson, works in information governance for a Connecticut law firm.
He's college educated, has experience in sales and marketing as well as information technology, but still has been laid off three times in his career.
“Was it a little bit stressful? Yeah. I'm kind of like 'I don't know, I'm getting married and don't have a job.' We just moved into our house and we have a mortgage, and I don't have a job,'" Thompson said.
The most recent layoff was in 2020.
Thompson said he took whatever gig work he could find to make sure there was at least some income until finding a permanent job. The husband and father of two says they were able to weather that storm because six years ago he and his wife Jennifer decided to get serious about managing their money.
They took a Dave Ramsey personal finance class that they embraced so enthusiastically that they now teach it to others.
“There are seven baby steps," Thompson said. "The first one is to get $1,000 in the bank and save it just as kind of an emergency fund. The second one is to pay off all of your debt."
If you think you could be laid off in the next year, and even if you don't, this is Kevin Thompson's strongest advice, and he points to the way it has transformed their lives.
He credits creating a budget, and then sticking with it, for helping them pay off $55,000 in 22 months, including a $27,000 balance on their credit cards.
Thompson said there are apps available to help you do it, like Mint, You Need a Budget, or Ramsey's EveryDollar program based on "telling every dollar where to go," which forces you to take control of what you do with every dollar you earn.
Taking control is the central theme in Natalie Pryce's story.
Pryce is a career coach and influencer on LinkedIn and advises her clients to take on the mindset of an entrepreneur, even for those who have no interest in ever running a business.
"Your career is your business" the Bridgeport-based mentor said.
Pryce said she learned the value of being proactive after she was laid off 11 years ago, just as her corporate career was taking off.
“I remember being in a state of depression, taking my mattress, dragging it into the living room, and watching TNT," the speaker told her audience in a TEDx Talk.
From that experience, and the past two years, the Central Connecticut State University graduate said she learned that we should always be ready for a new opportunity.
“I believe we all should be prepared for disruption of work," Pryce said. "With COVID, I think that taught us the biggest lesson ever. At anytime, there could be something that disrupts the way our work is."
The career coach said now is the time to start networking, both in person and online, to nurture the relationships you have and to create new ones.
Pryce also advises updating your resume and LinkedIn profile now, using language from job descriptions for positions you would like to have if you were looking for a job.
With speculation about where the economy is headed, the career coach said this is the perfect time to take a look at your industry to figure out if it's strong, headed for a slowdown, and to be honest with yourself about where you fit in.
If your job is at risk, take a look at whether this is the right time to add a new skill to become more valuable, or even consider temporarily stepping into a lower position where you would increase your chances of staying employed.
The so-called "Careerpreneur" said this should be an ongoing process and a permanent mindset.
Whether it's tightening up your finances or building the foundation for another job, both Kevin Thompson and Natalie Pryce said the time to act is right now.
If you're uncertain about your job and have financial concerns, there is more specific information from CNBC here.
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