5-minute read

Earners,

Here is what we know about the current job market:

1. Big companies are proactively cutting roles, even when profits are intact: This is them preparing for uncertainty, not reacting to failure.

2. Households are under pressure too: rising debt costs, tighter cash flow, and fewer job openings are squeezing everyday people.

3. Artificial Intelligence is accelerating expectations and changing job rules: Doing what you can’t automate (or showing you can use AI) is now part of job security.

Big Cuts and Corporate Behaviour. Even When Things Look “Fine”

You have probably seen headlines this year mimicking titles like “Major Corporations are Laying off Thousands of Employees.” What feels paradoxical is that many of these companies are still making profits, but they are acting as though the storm is already here.

In 2025, U.S. employers have announced more than 800,000 job cuts so far; this is a sharp 75% increase over the same period in 2024. Even giants with stable revenue are downsizing. Take Procter & Gamble: they are eliminating around 7,000 white-collar roles, not out of desperation, but as a strategic shift toward leaner operations and digital efficiency.

Why now? Because the cost of doing business is rising. With the Federal Reserve pushing interest rates above 5% (the highest in decades), borrowing costs have ballooned. What once cost 2-3% now eats up serious money in interest. For big firms holding significant debts, that can mean hundreds of millions more in annual interest payments. So when margins get squeezed, payroll becomes an easy lever.

Cutting early is a hedge. Companies would rather tighten now than wait for a downturn to force the decision later. They are retrenching ahead of the curve, shifting toward automation, and prioritizing employees who can clearly show their value.

What it Means at Home: Households in the Crossfire

It’s not just corporates feeling the pressure. The ripple effects are hitting every day people hard.

Credit card debt in the U.S. has become more prevalent. Over 14% of card balances are now at least 30 days past due. That means more income goes towards interest, and less goes to groceries, rent or savings. Mortgages and auto loans are also pricier, pinching household budgets further.

At the same time, job mobility is down. Fewer people quitting means fewer open roles for job seekers. That stagnation makes it harder to recover from a layoff or shift roles, even when you want to. When the market is less fluid, flexibility becomes a luxury.

In short: the same economic environment pushing firms toward tightening is pulling on household wallets too.

Artificial Intelligence: Communication Gaps

You have probably heard people blaming AI for job cuts. The reality is more nuanced, but it is still potent. Yes, AI has emboldened executives to scrutinize roles more harshly. The corporate narrative now often says: “Prove AI can’t do this job or else we’ll replace it.” Many tasks once considered irreplaceable are being challenged. Here’s what the data shows:

• Economists at Goldman Sachs estimate 6-7% of U.S. jobs could be replaced by AI.

• Meanwhile, studies from the St. Louis Fed show that jobs with high AI “exposure” have seen more unemployment rises since 2022.

• Some firms have already tied over 10,000 job cuts this year to automation or AI tools directly.

• That said, AI won’t replace entire economies. But it is shifting expectations. The roles under greatest threat are those with repetitive or administrative tasks. The ones safe aren’t immune, but will demand more creativity, relational skill, and context thinking.

What You Can Do

So with corporate tightening, debt pressures, and AI’s influencing all overlapping, where do you act?

1. Make your value visible. 

   Don’t assume others see how much you contribute. Track results, whether this is revenue saved, clients kept or efficiency gains. Create a “value portfolio” you can point to.

2. Lean into AI

   If you can use AI tools to multiply your output (data analysis, content, etc.), you’re aligning with how many companies are moving. Be someone who works with AI, not someone it can easily replace.

3. Build financial resilience.

   Start with the debt that carries the highest interest. Then aim for a small buffer; even a few hundred dollars gives air in tight months. It’s harder to be forced into bad decisions when you have breathing room.

4. Stay “offence-ready”

   Keep networking. Go on interviews even if you’re not desperate. Maintain side projects or skills that might become income sources. Don’t bet entirely on your current role.

5. Focus on uniquely human skills.

   Critical thinking, leadership, empathy, and messy judgment. Roles that require bending to nuance or uncertainty will always be harder to automate. Cultivate those.

Earn more,

TCE

To watch the featured episode, check out the video below:

Money Tip of the Week:

Check the expense ratio (management fee) on your investment funds. If you’re paying more than 0.5% annually, you could be leaving thousands on the table. Look into your investments to see how much they are costing you, and if there are lower-priced alternatives, consider switching.