Trump's Tariffs Create Job Market Uncertainty, Trapping Employees in Unsatisfying Roles

In 2023, Kathleen, a sales manager at a software company, faced a harsh reality: laying off her entire team while her job remained secure. Instead of relief, she felt betrayed and began a lengthy job search. However, the tech industry has been largely stagnant, with few opportunities and low salaries. The situation worsened as Donald Trump's tariffs plunged the economy into uncertainty, making it harder for her to find a new position. Feeling increasingly bitter and disengaged, Kathleen is trapped in a job she no longer enjoys. Similar scenarios are playing out across white-collar professions. For example, Dean, a customer support manager, realized he had hit a career ceiling and sought a new challenge. Despite initial optimism, the economic climate induced by Trump's trade policies has dampened job prospects. Laurie, an auditor at an energy company, has saved a "fuck you fund" to quit her job if needed but now fears that leaving might lead to prolonged unemployment. These experiences reflect a broader trend where employees are feeling stuck, leading to low morale and a reluctance to seek new opportunities. Since the pandemic, the tech sector has grappled with instability, resulting in a period economists term the "Big Stay." Last year, signs indicated a thawing job market as more companies planned to hire, but Trump's tariffs have reignited hiring freezes. This has created a cycle of frustration and disengagement, with studies showing that low engagement leads to decreased sales, higher customer dissatisfaction, and reduced profits. Gallup estimates that such low engagement costs businesses trillions globally, and the current economic uncertainty is exacerbating the problem. The extended unhappiness in the workplace affects not only those feeling trapped but also their colleagues. Unspoken frustrations manifest in everyday interactions, making the office environment toxic. For instance, Kathleen, once a positive influence, now finds her patience wearing thin. Laurie, too, is less tolerant of workplace issues, adding to the overall negative ambiance. This environment resembles an unhappy marriage, where everyone is affected by the discontent. To combat the stagnation, some companies are actively reshaping their workforces. Meta and Microsoft, for example, are laying off low performers while aggressively hiring for high-demand roles like AI engineers. While this might seem like a solution, it often leaves employees who are ready for change feeling even more trapped. Kathleen, despite her dissatisfaction, acknowledges her luck in having a job that pays the bills. Her experience contrasts with her unemployed friends, reinforcing the reality that sticking with a mediocre job is often better than risking unemployment. This prolonged job market freeze, dubbed the "Endless Stay," has significant implications for both employees and businesses. For employees like Kathleen, the lack of movement stifles their ability to find fulfilling roles that match their skills and drive. For companies, a disengaged workforce translates to lower productivity and increased costs. The economic downturn driven by tariffs is not just hitting bottom lines but is also eroding the enthusiasm and motivation that are crucial for innovation and performance. Industry insiders, such as Guy Berger, the director of economic research at the Burning Glass Institute, warn that this situation could persist for years. Even in a relatively optimistic scenario, the economic uncertainty created by Trump's policies is likely to continue, leading to a sustained period of low hiring and career stagnation. The Big Stay turning into the Endless Stay is a warning sign for the broader economic landscape, suggesting that the current measures are hindering the natural churn needed for economic growth. The overall impact of the Endless Stay is profound. It creates a workforce that is less motivated, less productive, and less engaged, which ultimately hampers businesses' ability to thrive. Kathleen's story is emblematic of a larger issue: talented professionals are being held back from contributing their best, and the cost is felt throughout the tech industry and beyond. In this context, companies must take proactive steps to address the issue. Forcing churn through targeted layoffs might provide a temporary fix, but it does little to restore the enthusiasm and drive that are essential for long-term success. Industry experts suggest that fostering a supportive and dynamic work environment, offering retraining and development opportunities, and providing financial support for employees looking to transition could help mitigate the negative effects of the Endless Stay. Overall, the Trump administration's tariffs are creating a perfect storm of economic uncertainty and career stagnation, with far-reaching consequences for both individuals and the broader business landscape. The Endless Stay is a critical issue that requires attention and strategic solutions to prevent long-term damage to the economy and workforce. Business Insider's coverage of this topic underscores the urgency of addressing economic policies that hinder job market fluidity and worker satisfaction.