Workers Fear Layoffs Amid Trump’s Trade, Tariffs, and Immigration Policies

Article Highlights
Off On

With growing uncertainty in the workforce and increasing anxiety among jobholders, recent policies implemented by President Donald Trump’s administration have caused significant unrest. This anxiety is not baseless, as a survey conducted by Resume Templates revealed that nearly half of the 1,200 workers surveyed expressed concern about potential layoffs. Trump, having assumed office on January 20, 2025, initiated several executive orders targeting various sectors, including trade, immigration, and diversity programs. This has led to heightened worries, particularly in the fields of accounting, education, and information technology, where employees feel particularly vulnerable.

Impact of Trade and Tariff Policies

Workers’ Concerns About Layoffs Due to Trade Policies

Nearly 59% of respondents highlighted that Trump’s trade and tariff policies could likely result in layoffs, creating significant unease across different sectors. Tariffs, specifically, have become a major concern, as they can increase the cost of raw materials and finished goods, leading companies to cut operational costs, often through workforce reductions. This move has the potential to affect not just manufacturers or exporters but can reverberate throughout supply chains and service industries supporting these businesses. Industries that rely heavily on international trade have begun to see disruptions, with companies stalling expansion plans and withholding investments due to the uncertain economic climate.

The unpredictability of tariffs and trade measures compounds the anxiety, with many companies unable to forecast future costs accurately. This volatility makes it challenging for them to plan long-term strategies, including workforce expansion or retention. Employers are finding it increasingly difficult to offer job security to their employees, fueling the prevailing climate of fear. Many employees worry that if trade tensions continue to heighten, businesses may be forced to relocate their operations overseas to mitigate the cost impacts, leading to substantial job losses domestically. The survey sheds light on these very real fears, suggesting an urgent need for stable and predictable trade policies that could reassure the workforce.

Effects on Specific Sectors

Interestingly, workers in the technology sector have voiced considerable concern, as changes in tariffs can significantly impact their industry. Many tech companies rely on importing components or exporting finished products, and any fluctuation in tariffs can affect their bottom line. Education and accounting sectors are similarly troubled by these uncertainties, given their indirect dependence on the broader economic environment. The ripple effects of trade policies mean that a significant shift in one sector can cascade into other areas, magnifying the perceived vulnerability of jobs.

Moreover, global trade policies have forced numerous companies to reassess their business models. Some have chosen to diversify their supplier base away from countries most affected by tariffs, which can entail considerable costs. This realignment can lead to short-term job cuts as companies struggle to realign their operational structures. In sum, the shifting sands of trade and tariff regulations present a complex challenge to workforce stability, underpinned by deep-seated concern over the future.

Immigration Policy Worries

Compliance and Employment Impact

Between 2019 and 2023, stricter immigration rules and enforcement have added another layer of complexity for employers. About 39% of surveyed workers noted that changes to immigration law could be a significant factor in potential layoffs. Employers now face heightened scrutiny over compliance issues, particularly concerning I-9 forms and the E-Verify system. These compliance measures can be time-consuming and costly, and failures can lead to severe penalties. As a result, some businesses may reduce hiring or look to automate roles previously filled by immigrant workers to avoid the risk of non-compliance.

The impact on specific sectors, like technology and healthcare, which traditionally rely on a significant number of immigrant workers, cannot be understated. Harsher immigration policies risk depriving companies of top talent, forcing them to either relocate jobs to regions with more relaxed immigration laws or to face potential labor shortages. Consequently, companies may cut jobs or scale back projects that would otherwise have employed numerous skilled workers. The fear of job instability hasn’t been confined to immigrant communities alone but has extended to native-born workers who recognize the interconnectedness of their labor markets.

Diversity, Equity, and Inclusion Program Cuts

Another notable concern is the reduction or elimination of Diversity, Equity, and Inclusion (DEI) programs, highlighted by 22% of surveyed workers. These programs are essential for promoting workplace harmony and enhancing organizational resilience. They play a crucial role in creating inclusive environments where all employees feel valued. However, cuts to these initiatives, driven by policy shifts or economic uncertainties, can damage workplace morale and reduce a company’s ability to attract and retain diverse talent. Cutting DEI programs could be a short-sighted approach that ultimately harms long-term growth and innovation.

Industry experts argue that even during policy uncertainty, companies should reinforce their DEI commitments. Emily Dickens from SHRM underscored the strategic value of DEI initiatives, advocating that firms leverage this challenging period for introspection and strength-building. Strengthening such programs during tough times can foster loyalty, enhance productivity, and improve overall employment satisfaction, making the workforce more resilient in the long run. For companies, navigating the complications of new immigration policies will require balancing compliance with a strong commitment to diversity and inclusion as foundational elements of their workforce strategy.

Importance of Transparent Communication

The Role of Employers

Amidst the swirl of anxiety and uncertainty, transparent and proactive communication from employers becomes paramount. As workers grapple with fears about layoffs due to shifting trade, tariff, and immigration policies, a clear communication strategy can mitigate some of this anxiety. Julia Toothacre, Chief Career Strategist at Resume Templates, stressed that workers need assurance and clarity about their job security. This can be achieved through consistent updates and transparent discussions about the company’s outlook and potential impacts of the policies in place.

Employers who openly share their plans and strategies regarding potential layoffs or workforce restructuring can build a more trusting relationship with their employees. Transparency fosters a sense of shared purpose and can help employees feel more secure despite the prevailing uncertainties. It allows workers to prepare and adapt better to any changes, ultimately enhancing organizational resilience. In the absence of clear communication, speculation, and rumors can fill the void, exacerbating anxiety and potentially driving talented employees to leave preemptively for more stable opportunities.

Employee Engagement Strategies

With growing uncertainty in the workforce and escalating anxiety among jobholders, the recent policies enacted by President Donald Trump’s administration have stirred considerable unrest. This unease is not unfounded, as a survey by Resume Templates disclosed that nearly half of the 1,200 workers polled voiced concern over potential layoffs. Trump, having taken office on January 20, 2025, issued several executive orders affecting various sectors, including trade, immigration, and diversity programs. These actions have amplified worries, especially in fields such as accounting, education, and information technology, where employees feel particularly at risk. The policies have led many workers in these industries to fear for their job security, making it crucial for employers to address these concerns to maintain morale and productivity. The impact of these changes underscores the importance of adapting to new policies and the need for ongoing support for employees in vulnerable sectors facing such instability.

Explore more

Hotels Must Rethink Recruitment to Attract Top Talent

With decades of experience guiding organizations through technological and cultural transformations, HRTech expert Ling-Yi Tsai has become a vital voice in the conversation around modern talent strategy. Specializing in the integration of analytics and technology across the entire employee lifecycle, she offers a sharp, data-driven perspective on why the hospitality industry’s traditional recruitment models are failing and what it takes

Trend Analysis: AI Disruption in Hiring

In a profound paradox of the modern era, the very artificial intelligence designed to connect and streamline our world is now systematically eroding the foundational trust of the hiring process. The advent of powerful generative AI has rendered traditional application materials, such as resumes and cover letters, into increasingly unreliable artifacts, compelling a fundamental and costly overhaul of recruitment methodologies.

Is AI Sparking a Hiring Race to the Bottom?

Submitting over 900 job applications only to face a wall of algorithmic silence has become an unsettlingly common narrative in the modern professional’s quest for employment. This staggering volume, once a sign of extreme dedication, now highlights a fundamental shift in the hiring landscape. The proliferation of Artificial Intelligence in recruitment, designed to streamline and simplify the process, has instead

Is Intel About to Reclaim the Laptop Crown?

A recently surfaced benchmark report has sent tremors through the tech industry, suggesting the long-established narrative of AMD’s mobile CPU dominance might be on the verge of a dramatic rewrite. For several product generations, the market has followed a predictable script: AMD’s Ryzen processors set the bar for performance and efficiency, while Intel worked diligently to close the gap. Now,

Trend Analysis: Hybrid Chiplet Processors

The long-reigning era of the monolithic chip, where a processor’s entire identity was etched into a single piece of silicon, is definitively drawing to a close, making way for a future built on modular, interconnected components. This fundamental shift toward hybrid chiplet technology represents more than just a new design philosophy; it is the industry’s strategic answer to the slowing