American workers had a rough 2025. Will 2026 be any different?

It’s been a rough year for American workers. Unfortunately, 2026 isn’t looking all that much better.

The year began with tariffs—just as inflation was finally starting to cool—followed by AI anxiety and headline-grabbing layoffs, before ending with America’s longest ever government shutdown.

Surveys suggest many American workers didn’t get a raise in 2025, and most are unsatisfied with their current compensation. They feel, however, as though they can’t leave their jobs or ask for more money—despite an increasing cost of living—for fear of making themselves vulnerable to future layoffs.

Instead, most relied on secondary sources of income to make ends meet, further fueling disengagement and burnout at their day jobs. 

“The story of the U.S. job market this year is definitely one of struggle and strife,” says Jasmine Escalera, a career expert with the résumé-building platform Zety.

That sense of desperation is largely the result of a tough job market, where layoffs are on the rise, job openings are declining, and more Americans are falling into long-term unemployment. 

“We have employees that are in survival mode, feeling as though they can’t make any requests because they don’t want to rock the boat,” Escalera says, adding that there could be negative repercussions for employers as well. “When you are in survival mode, you cannot also be in creativity and innovation mode. You’re just thinking about how to keep this job.”

Americans are feeling underpaid, but afraid to ask for a raise

According to a recent survey of 1,000 American workers by Zety, 41% of American workers haven’t had a meaningful raise in more than two years.

Overall, 36% feel underpaid, but 66% have avoided asking for more money. And half say they’re grateful just to have a job in this economy, in a trend known as “job hugging.”  

“The cost of living is still increasing, and we have employees that are unfortunately not feeling as though they can ask for a pay raise,” Escalera says. “They’re incredibly concerned about job security and will do whatever it takes to stay in the role they have.”

The Zety study is consistent with a global survey conducted by online résumé and cover letter builder Kickresume, which found that only 28% of workers are satisfied with their current compensation. Among those who feel underpaid, over a third believe they should be earning 30% or more than their current salary.

“Only about half of Americans who took part in our survey have had a raise in the past year, and more than 25% haven’t had a raise in more than two years,” says Martin Poduška, editor-in-chief at Kickresume, who co-authored the study.

Further adding to workers’ frustration is the feeling that employers don’t sympathize with their financial struggles, with 80% saying they’re skeptical that their boss comprehends the cost-of-living strain they’re under.

“People who have a job should probably hang on to it and wait it out if they can,” Poduška advises. “There will be a day where we will be able to complain again, but this is probably not the year.”

Instead, they’re turning to side gigs to make ends meet

Unable to find a new full-time gig that offers a higher salary, and unable or unwilling to ask for a raise in a difficult economy, many are instead turning to gig work and side hustles to make ends meet.

According to a recent survey conducted by MyPerfectResume, 71% of workers relied on secondary income to stay afloat. Among them, 42% say they use the extra earnings to pay off debts, and more than a third relied on it for essentials like housing and groceries.

“When you feel like you don’t have control over whether or not you’re going to get laid off, you can take control or just soften the blow by figuring out a way to make more money with a side hustle,” explains MyPerfectResume career expert Toni Frana. “That was a big deal for people in 2025, and it allowed them to be more resilient.”

How to prepare for the worst (while hoping for the best)

The challenges workers faced in 2025 had many causes—ranging from tariffs and AI anxiety to inflation and recession fears—and unfortunately, few of those underlying causes appear poised for a resolution in the new year.

“Struggle and strife” may be the new normal for many American workers, but that doesn’t mean they’re helpless to improve their situation. 

Some, for example, will continue to turn to those side hustles to up their earnings in lieu of a raise or a higher paying job in a difficult economy. Others may want to advance their skills or add new capabilities that can help them stand out in a tight job market.

“If you’re worried, make sure you’re taking care of yourself and your career,” Frana advises. “Are you tracking your career accomplishments and wins? Do you know where you bring value to your organization and what that value proposition could be for your next role? Do you have a good handle on your career story?

“Those can make for a softer landing if you suddenly lose your job,” she says.