Majority of Laid-off Workers Take Lower-Paying Jobs — Are They More Secure?
For many laid-off workers, the struggle doesn't end when they get a new job.
In a 2026 analysis, the Bureau of Labor Statistics found that 7.4 million U.S. workers were displaced between 2023 and 2025, including 3.3 million who had been with their employer for at least three years. Worryingly, the number of laid-off long-term workers jumped 23% (746,000 workers) from the previous three-year period. Only 66.1% of these long-tenured workers had found new jobs as of January 2026.
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Of those that did find new work, less than half (49%) found work with equal or greater pay. Compare that to 62% for the previous three-year window. And that's just the start of the woes.
Less Pay Doesn't Mean More Job Security
If the majority of laid-off workers take lower-paying jobs, are they at least more secure?
Unfortunately, many laid-off workers feel desperate and grasp for whatever they can find. “Starting over isn’t the same as moving up," said Keith Spencer of Resume Now.
That said, workers can go out of their way to find jobs with greater security. Or perhaps better yet, jobs that will build their skills and resume to reposition them for success moving forward.
Career expert Natalia Bielczyk with Ontology of Value said that there are times when taking a pay cut makes sense. “A lower salary can be a rational tradeoff when it comes with stronger fundamentals: an industry with durable demand, transferable skills, diversified revenue, a financially healthy employer or a role less exposed to technological displacement.”
Financial Desperation Hurts Workers’ Job Hunt
A 2026 study by SecureSave found that 55% of U.S. workers can’t afford a $500 emergency, much less months of unemployment.
That leads many laid-off workers to take the first job that comes along, no matter how low the salary or job security. It also prevents them from negotiating effectively with employers.
“Displaced workers enter the market with less bargaining power, more financial urgency and no guarantee that their previous salary can be replicated," said Spencer.
It doesn’t help that most workers’ incomes have not kept pace with inflation. In a 2026 survey, Resume Now found that 88% of workers’ wages have not kept up, leaving them with effectively lower paychecks than they had a year or two ago.
Evaluate the Risk vs. Rewards Behind the Job Offer
The employment landscape keeps shifting under workers’ feet between AI, soaring energy prices, tariffs and global trade disruptions.
If you still have your job but fear for it, start setting aside as much cash as you can to bridge the gap between jobs. Also start exploring what types of new job you want — and position yourself or apply now, while you still have a job. It’s always easier to find a job when you already have one.
Before accepting a lower-paying position (or really any job), Bielczyk recommends asking five questions:
Is demand for this industry growing, stable or shrinking?
Are the skills I will develop transferable to multiple employers?
How dependent is this role on a single technology, client or revenue stream?
Does the employer have a history of layoffs or cost-cutting?
Will this job increase my future options or simply keep me occupied?
Yes, sudden unemployment is scary. But you don’t want to find yourself back here in six months, entering a cycle of layoffs and lower paychecks. Put in the work now to position yourself for a stable, higher-income role now, so you can enjoy it for years to come.
Lower-pay work isn’t intrinsically more secure. In fact, with AI increasingly capable of handling lower-skill tasks, lower-pay work looks less secure than ever. Climb out of its reach now to enjoy better job security for the rest of your career.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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