Workers are too afraid of layoffs to take PTO

Spring break season is in full swing, and summer vacations will be here before you know it. Layoff fears, however, have some Americans forgoing their paid time off (PTO) just when they need it the most—but experts warn pushing themselves won’t help their careers, either.

According to a new survey conducted by outplacement services provider Careerminds, 17.5% of American workers worry that using their PTO will make them more vulnerable to layoffs, and an equal proportion believe it will negatively impact performance reviews or promotion opportunities.

“It’s not paranoia; it’s being pragmatic,” says Amanda Augustine, a certified professional career coach for Careerminds. “They’re looking around and trying to figure out, ‘What could potentially put me at risk?’ And they’re saying, ‘I’m going to try and avoid taking PTO if I think it’s going to put me in harm’s way.’”

Augustine doesn’t blame workers who are wary of doing anything that might put a target on their back during this period of job hugging; however, she says the situation is “sad.” “It just illustrates the amount of uncertainty and that instability that so many feel right now when it comes to their job security.”

Some employers, though, seem to be reinforcing the notion that using vacation days is frowned upon. According to the survey, more than 10% of employees say their workplace culture discourages taking PTO.

Younger, Hybrid Workers Take the Least PTO

Layoff fears have grounded vacation plans across the board, but the data suggests hybrid workers and younger staffers are the most afraid of being penalized for taking time off.

While 43% of remote workers and 30% of fully in-office workers say they always take their allotted time off, that number drops below 20% among hybrid employees.

The data doesn’t explain the discrepancy, but Augustine suggests hybrid workers might feel they’re already enjoying an extra perk that could be revoked if employers start to question their dedication.  

“There is always that concern that they’re going to make me come back in,” she says. “So, what do I need to do to ensure that I don’t lose this benefit?”

Younger workers—who are facing one of the toughest entry-level job markets in a decade—also seem particularly wary of using their time off. According to the survey, over a quarter of Gen Zers are avoiding taking time off, compared with about 19% of millennials, 12.5% of Gen Xers, and just 2.4% of baby boomers.

“[Older workers] are more likely to be well established in their careers, so taking time off here and there is less of a concern for them—whereas junior employees are still trying to make a name for themselves and prove their worth,” Augustine says.

Skipping a Vacation Can Do More Harm Than Good

Though some may think they’re improving their career prospects by forgoing vacation time, research suggests a flaw in that logic, as powering through can drag performance.

According to a 2025 study on annual vacation leave and employee well-being that was published by the American Psychological Association, taking time off “has a large effect on well-being that does not fade out as quickly as previously thought.” That study ultimately found that time off improved employee well-being and performance for an average of 43 days afterward. 

“Vacation serves a critical role,” says Ryan Grant, an assistant professor of psychological and organizational science at the University of North Carolina at Charlotte, and one of the study’s coauthors.

Grant explains that those who fear for their job security enough to avoid taking time off are likely already facing a heightened level of stress. “If you’re just letting those things build up, they can dramatically snowball over time into much worse mental health and well-being challenges,” he warns.

After all, most people wouldn’t work with a high fever, as they are likely to accomplish little while prolonging their illness. However, when it comes to mental health challenges, some take the opposite approach. 

“It’s kind of ironic because it directly opposes your goal of performing better,” Grant says. “You would hope that the organization cares more about the quality of your performance, which typically will be better after taking vacation and recovering.”

It Starts at the Top

When it comes to the culture surrounding time off, workers tend to take cues from the top. When managers and leaders forgo their vacation time—or go away while remaining tethered to work—it sends a signal to the rest of the organization about the kinds of behaviors that are expected.

“If leadership isn’t talking about the importance of PTO and how it actually leads to better performance, or if they’re not taking it themselves, people will have the mindset that this isn’t important to the company,” says Jasmine Escalera, a career expert for AI résumé builder LiveCareer. 

Ideally, Escalera says managers and leaders will encourage staff to use their days off and fully detach from work during that time. “If the directive is coming from them, that means that it is okay for me to not just take PTO, but to take it fully and completely.”

According to a survey conducted by LiveCareer last summer, 29% of workers said they were hesitant to take time off due to job insecurity, and the Careerminds survey suggests that little has changed since.

“PTO is not a luxury; it’s part of the [compensation] package,” Escalera says. “I wish more companies had these conversations about why PTO is so incredibly important. But we also have to take responsibility and say, ‘I’m doing a great job, I agreed to take this [compensation package] for my great work, so I’m going to use it.’”