How To Manage Unemployment Anxiety: A Practical Guide for Singaporean Gen Z

In today’s fast-paced world and unstable economy, the idea of losing a job or struggling to find one can feel terrifying, especially for Gen Z, who are just entering the workforce. It’s normal to feel stressed, worried, or even panicked when thinking about unemployment. But understanding what this anxiety is and learning how to manage it can make a big difference.

“It can definitely take a toll mentally to have to constantly be on the lookout for jobs that fit my abilities and interests,” said Keesha Maria Shaqur, 25, who’s currently unemployed. “Beyond spending most of my time job-hunting and thinking about what I want to do in life, I’ve turned to my friends and family for support quite a bit to stay motivated!”

What is unemployment anxiety?

Unemployment anxiety is the stress, worry, or fear that comes from being without a job or struggling to find one. It can affect your mood, self-esteem, and even physical health. For Gen Z, who are often under pressure to succeed quickly in a competitive job market, unemployment anxiety can feel overwhelming.

Common signs include constant worry about finances or career prospects, feeling restless or unable to focus, negative self-talk, like “I’m not good enough”, and physical symptoms such as trouble sleeping, headaches, or stomach issues.

A millennial netizen, the_rumblebee, shared on Reddit: “I’m job hunting myself, and even though I know as a hard fact that sending out hundreds of applications and getting rejected constantly is the norm, it’s still demoralising. I can only imagine that it’s way more punishing on younger people who might have more self doubt.”

What causes unemployment anxiety?

Several factors can trigger or worsen anxiety about unemployment:

1. Financial pressure

Rising costs of living in Singapore, student loans, and personal expenses can make the thought of being unemployed especially stressful.

“It’s common for anxiety to be amplified by financial pressures, unclear career paths and peer comparisons, which can increase self-doubt. These concerns don’t reflect a lack of ability, rather, they highlight the importance of understanding in-demand skills, continuously upskilling, gaining practical experience, and effectively showcasing one’s capabilities,” said Priscilla Pang, Career Coach at General Assembly.

2. Social comparison

Seeing peers land jobs quickly on LinkedIn or social media can make you feel left behind.

Dr Annabelle Chow, Clinical Psychologist at Annabelle Psychology, explained: “Common triggers include feeling fearful or ashamed about not progressing in the way one thinks they ‘should,’ especially in a society that often equates success with career milestones. … Seeing others move forward while you feel stuck can intensify these emotions, creating a spiral of comparison and self-doubt.”

3. Uncertainty in the job market

Industries are evolving fast, and automation or economic shifts can make job stability feel uncertain.

Samantha Tan, HR Business Partner, Jobstreet by SEEK, shared with us that mentions of “data analysis” has grown by 42% and “automation” by 4%, comparing data from October to November 2024 with data from the same period this year. The number of entry-level jobs postings in Singapore requiring AI-related skills has also increased by 40% in the first half of 2025, compared to the same period in 2024.

However, Samantha highlighted that jobseekers need not worry about AI replacing administrative roles entirely: “Traditional entry-level functions like ‘data entry’ (+12%) and ‘admin support’ (+16%)  have  also increased, while ‘research’ has surged to a 93% increase. This suggests that while AI is changing how work gets done, it isn’t replacing administrative roles entirely – it’s augmenting them. Many companies are also still adapting to and experimenting with AI technologies, which means the focus is on integrating these tools to boost productivity rather than replacing people. In practice, AI is allowing traditionally ‘simple’ jobs to evolve towards higher order tasks.”

4. Self-identity tied to school or work

Many young adults tie their self-worth to their school or career success, so being unemployed can feel like a personal failure.

“For those transitioning out of school or university, this loss [of daily structure and social connection] can be even more noticeable. The sudden shift from a highly structured environment, where expectations, goals, and social contact are built into your routine, to the uncertainty of unemployment, can leave you feeling unanchored. It can be hard to figure out how to spend all that unstructured time,” said Dr Chow.

Ways to deal with unemployment anxiety

If you’re feeling stuck, there are practical ways to manage this anxiety and protect your mental health.

1. Acknowledge your feelings

It’s okay to feel anxious. Accepting your emotions instead of ignoring them allows you to respond more effectively. Journaling or talking to friends can help.

“It’s important to recognise their feelings as valid, which also helps to strengthen psychological flexibility by learning to accept what’s out of your control, stepping back from unhelpful thoughts, and reconnecting with your values. Alongside that, building resilience can support emotional balance and help you regain confidence in your ability to navigate uncertain times,” said Dr Chow.

2. Focus on what you can control

Instead of worrying about the whole job market, focus on actionable steps like updating your resume, learning a new skill, or applying for positions every week. Small wins build confidence.

“I’m unemployed at the moment and I wanted to spend the time in a meaningful way by finding a course to upskill,” said Keesha, who recently completed Heicoders Academy’s Generative AI Course. “I also felt that it would make me more employable to show that I’m adapting to the changing employment landscape.”

Professor Timothy Chan, Deputy Provost, SIM Global Education, also advised: “Gen Zs need to master digital fluency alongside a growth mindset, and core soft skills such as communications, creative problem-solving, and critical thinking. This combination forms a necessary ‘Power Stack.’ … At SIM, we developed our CareerSense app to help students identify in-demand skills and plan their next steps more strategically, but the key is to own your learning journey. Curiosity, the willingness to learn and the initiative to act, will define graduates who can think, adapt, and thrive, which will help to sustain employability no matter how the future evolves.”

3. Stay connected

Isolation can worsen anxiety. Reach out to friends, mentors, or online communities. Networking isn’t just for finding jobs; it also helps you feel supported.

“Talking to people you trust can make you feel less alone and more understood. … Explore who you are outside your profession. Reconnect with your interests, passions, or values – the things that make you you,” said Dr Chow.

4. Redefine success

Try to separate self-worth from employment status. Volunteering, learning new hobbies, or freelance work can provide purpose and maintain momentum while unemployed.

“Start by reframing unemployment as a transitional phase for learning and repositioning, rather than a personal failure. Unemployment often reflects timing or a skills mismatch, not a lack of talent. … It’s also important to broaden the definition of progress beyond simply landing a job. Focus on skill acquisition, personal growth and professional visibility. Documenting what you’re learning, even if it’s a small project or a beginner-level skill, can also rebuild confidence and increase your readiness when suitable opportunities arise,” said Priscilla.

Dr Chow also advised, “Even calling yourself “funemployed” (instead of ‘unemployed’) can add a touch of humour and lighten the emotional weight, reminding you that this period does not define your worth.”

5. Seek professional guidance

Career coaches, employment agencies, or government initiatives like Workforce Singapore can help you strategise your job search, making the process less overwhelming.

“Consulting a career coach may also be beneficial as they can help you identify your strengths and possible career paths, help you build your personal brand, and provide the right job-seeking and interview advice,” explained Priscilla.

Ready to overcome unemployment anxiety?

Just like what Priscilla said, “​​upskilling is no longer just for mid-career workers.” We need to “keep learning and building real-world experience” to stay relevant in an evolving market.

Samantha also highlighted, “Instead of worrying about AI replacing jobs, use it to strengthen your own skillset. Leverage AI tools to quickly summarise job descriptions, practise mock interviews, or refine your portfolio and resume.”

Unemployment anxiety is tough, but it’s not permanent. By acknowledging your feelings, taking proactive steps, and leaning on support systems, you can reduce stress and navigate career uncertainty with resilience. Remember: your career path isn’t a race. It’s a journey, and it’s okay to take it one step at a time.