Opinion: Anxiety over job loss

By Prisha Khanna 

Artificial intelligence (AI), considered the best invention of humankind, is slowly making our worst nightmares come true. AI is already doing most jobs better than we ever could and the human cost of it is jarring.

The prevalence of AI and its ability to replace several automated tasks in the workplace have now become a direct threat to the social position of employees. Individuals who fear losing their competencies and independence to the automotive wave are more likely to perceive AI as a greater threat to their identity. Those who have an increased sense of work responsibility and seem to have a heightened sense of importance for their role also tend to experience an increased identity threat (Mirbabaie et al, 2021). Lack of awareness and preparedness to work with AI is a prominent reason for this.

These are some leading factors for employees to experience uncertainty and anxiety about being replaced at their jobs. Unfortunately, their anxieties have a reason to exacerbate in recent times.

Goldman Sachs has estimated that about 300 million jobs could be lost or degraded due to this rapidly evolving technology. There has been an influx of investments in global AI projects in recent times. From 2021, $94 billion worth of investments have been made towards AI (Kelly, 2023). Such a growth trajectory can only mean higher job insecurity in the coming years.

Layoffs and Displacement

So far, 2024 has already seen 32,000 employees become victims of mass layoffs in top companies like Google, Amazon, Meta (Bhati, 2024). The trend seems to be nowhere near stopping and its psychological implications are slowly coming to light. The sheer lack of empathy portrayed by the organisations often leaves employees feeling expendable. It creates an atmosphere of fear, uncertainty and lack of trust in the organisation. If such big companies can throw thousands of brilliant employees out of jobs, then the rest of us need to let go of our perceived bubble of employment security. Frequent layoff cycles have a proven long-term impact on the mental and emotional well-being of workers. It results in increased stress levels, reduced self-esteem and anxiety owing to the uncertainty that surrounds one’s employment. Added to this is the fear of impending financial unpredictability (Kelly, 2023).

As employees across jobs are watching the strength of generative AI grow at an unprecedented rate, there is a constant fear that machines may one day replace human workers. This fear of job loss is labelled as job displacement anxiety. Studies show that workers across sectors report feelings of anxiousness regarding their future employment and the relevance of their skillset in the fast-moving industry requirements. PwC’s annual global workforce survey from 2022 revealed that at least one-third of the respondents reported concerns regarding the chances of AI replacing them at their workplace (Cox, 2023).

Implications of job displacement anxiety go way deeper than apprehensions about the future. The psychological impact is significant and has been found to take a toll on the motivation and well-being of employees. It is crucial to analyse the psychological impact of the situation so that employees across the globe are better equipped to navigate the uncertain AI waters.

Psychological Implications

The impact of AI in the form of mass layoffs, combined with the constant worry over the future of their career, is pushing employees under immense psychological burden. The loss of employment is bound to bring with it a gush of negative emotions. The shock and disparity of having been laid off are most often followed by reduced self-esteem and various symptoms of anxiety and even depression. These symptoms are elevated when there is a growing financial and social insecurity that grips displaced employees. The resultant panic can negatively impact day-to-day functioning and may, in fact, even hamper one’s ability to secure another job. The reduced self-esteem may eventually lead to reduced self-worth and distorted self-perception which may lower one’s overall productivity and various other cognitive abilities like concentration and decision-making. (Laker, 2023)

Those who are not subjected to such a displacement are still impacted by the lack of job security. The fear that they may be the next one to be laid off often leaves employees feeling stressed and anxious about the fate of their jobs. The additional workload on them owing to organisational downsizing exercises increases symptoms of burnout and deteriorates the mental and physical health of the employees (Laker, 2023).

A study conducted using a French survey revealed that mass layoffs result in an increased consumption of prescribed psychotropic drugs by employees who were not displaced. The significant increase has been attributed to possible reasons stemming from job insecurity and what it means for employees, their financial security, families and health (Clainche & Lengagne, 2019). People on either side of the job displacement crisis have something to fear. Thus it becomes imperative for individuals to constantly stay a step ahead in their professional journeys. The future of work is to work with AI, not against it.

Taking on AI 

The Future of Jobs Report 2023 suggests that at least 44% of the existing workers’ skills will be disrupted in the next five years. This means that continuous learning and upskilling are now more important than ever. It is important to critically evaluate the job market and recognise skills that AI can’t replace such as empathy, leadership and social influence, which can be honed and used to one’s advantage. While AI may be eating up several jobs, it is already creating many more jobs that never previously existed. It is vital to recognise and grab the right opportunity. (World Economic Forum, 2023)

The rapid advancement of AI and machine learning has irreversibly re-moulded our workplaces. The key to navigating the challenges that come with this automation is embracing the growth mindset of constantly learning. Adaptability will prove to be a crucial factor in staying ahead of the curve and safeguarding future careers for the existing workforce.

The need of the hour is for individuals to strongly consider investing in personal and professional development and for organisations to facilitate this process for their employees. Such proactive initiatives can help carve the path for a more resilient workforce that is equipped to work in the age of automation.

(The author is Psychology student at FLAME University, Pune)