Economic Uncertainty Reshapes America's Workforce

Got story updates? Submit your updates here. ›

A new report from Economist Enterprise, supported by Nuveen, a TIAA company, exposes how economic uncertainty is freezing career mobility, pushing retirement out of reach, and forcing employees to raid savings and delay life decisions just to stay afloat. The research surveyed over 2,000 full-time American workers and found that job security has become a top priority, with 62% choosing long-term stability over new opportunities. Retirement expectations have also shifted, with workers now expecting to retire nearly 4 years later than planned due to rising costs. To cope, many are taking hardship withdrawals from retirement accounts and delaying major life milestones like buying a home or having children.

Why it matters

This research provides critical insights into how economic forces are reshaping the American workforce, with far-reaching implications for employers, employees, and the broader economy. As workers prioritize job stability over career advancement and struggle to save for retirement, businesses must adapt their benefits and talent strategies to attract and retain top talent in an increasingly uncertain environment.

The details

The research found that 62% of workers are choosing long-term job security over seeking new opportunities, reflecting a broader trend of risk-aversion in the labor market. This 'job-hugging' mentality is most pronounced in certain sectors, with 35% of financial services and insurance workers and 34% of manufacturing workers reporting they have stopped looking for new jobs due to job security concerns. In contrast, government employees appear less affected, with only 23% pausing their job search for this reason. On the retirement front, workers now expect to delay their ideal retirement age by nearly 4 years on average, with lower-income employees anticipating the largest gap of around 6 years. Rising living costs (47%) and healthcare expenses (41%) are the primary drivers of these delays, rather than a desire to keep working. Even younger workers like Gen Z expect to retire 5 years later than planned. To cope with these financial pressures, a significant portion of workers are taking drastic measures. About one-third (35%) have taken hardship withdrawals or loans from their retirement accounts, with the highest rates in financial services (44%) and manufacturing (41%). Thirty percent have also cut back on retirement savings contributions, including 36% of high-income earners. Additionally, 73% of workers have postponed major purchases like homes and cars, with millennials most affected at 82%.

• The research was conducted between November and December 2025.
• The findings are based on a survey of 2,063 full-time employed Americans aged 18-62.

What they’re saying

What’s next

The research highlights the need for employers to reevaluate their benefits and talent strategies to better support workers navigating economic uncertainty. Providing more robust retirement planning resources, financial wellness programs, and flexible work options could help employees feel more secure and empowered to make long-term career and life decisions.