Five Years After Lockdown, the Job Market Is Still Feeling the Impact

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By Alexander Hamilton

This week marks five years since the United States went into lockdown due to the COVID-19 pandemic. March 13, 2020, was the day the Trump administration declared a national emergency, triggering a cascade of shutdowns that would forever change the economy, the job market, and the way Americans work.

The past five years have seen businesses rise, fall, and transform, while the workforce has undergone a profound shift in expectations, priorities, and stability. Remote work, labor shortages, and automation have all become defining features of the post-pandemic job market. But as the dust settles, many workers are left struggling with job insecurity—not just from traditional layoffs but from a quieter, more insidious trend: silent firing.

The early days of the pandemic saw an unprecedented labor shake-up. Millions of workers were laid off, furloughed, or forced to pivot into new industries. Then, as businesses reopened, something unexpected happened: workers began quitting voluntarily. Dubbed “The Great Resignation,” this mass exodus saw employees leaving jobs in search of higher pay, better benefits, and work-from-home flexibility.

Employers, struggling to retain talent, responded by offering higher wages and remote options—but only for a while. As hiring slowed in 2023 and 2024, companies reversed course, tightening budgets and pulling back on employee-friendly policies. Now, in 2025, the labor market has swung in the opposite direction.

“Quiet Quitting gained momentum during the pandemic. People would do the bare minimum or below in an effort to collect an easy paycheck and be fired with severance. But the inverse might be gaining momentum soon. Silent Firing. Companies are making jobs more difficult in the hopes that employees quit so their jobs can be automated,” says George Kailas, CEO at Prospero.AI.

Unlike the mass layoffs of 2020, silent firing is more subtle. Employers cut benefits, reduce growth opportunities, increase workloads, and implement stricter return-to-office mandates—all in an effort to push employees out without officially firing them.

The days of abundant job postings and record-breaking wage growth are fading. As hiring slows, companies are exerting more control over employees, reducing job mobility and limiting opportunities for career advancement.

“The lack of job mobility is only making matters worse,” says Kailas. “Employees who are silently pushed out struggle to find new positions in an already tough hiring landscape. And with fewer job postings, companies can hold onto power, keeping wages down and preventing workers from negotiating better opportunities.”

Many workers who left jobs during the Great Resignation now find themselves in a difficult position. The flexibility and perks they once enjoyed are disappearing. Companies no longer feel the pressure to compete for talent the way they did in 2021 and 2022.

This shift has been particularly hard on younger workers—those who graduated during or after the pandemic. Many entered a job market filled with high salaries and work-from-home options, only to now find themselves dealing with return-to-office mandates, hiring freezes, and fewer chances to move up.

For many, the pandemic wasn’t just an economic crisis—it was a personal reckoning. Some workers changed industries, others started businesses, and many re-evaluated what they wanted from their careers.

Stories of people like Thomas Locatell, who turned his woodworking passion into a business during lockdown, or Sonya, a research scientist who left a stable university job for remote work, highlight how deeply the pandemic changed career paths.

For some, the shift was positive. For others, it led to financial insecurity, burnout, and a workforce that is still struggling to find stability.

And that instability isn’t going away anytime soon.

As we mark five years since lockdown, the question remains: Is the job market still recovering, or has it permanently changed?

With automation replacing jobs, companies using silent firing to cut costs, and job mobility shrinking, many workers feel trapped in positions they no longer want but can’t afford to leave.

“So, is silent firing making the job market worse in 2025? The signs point to yes,” Kailas warns. “By avoiding direct layoffs, companies are quietly eroding career stability, making it harder for workers to move up—or even move on. The question is, how long can this unsustainable cycle continue before it breaks?”

The pandemic may be over, but its consequences are still reshaping the way we work, hire, and think about job security. Five years later, we are still learning, adapting, and reckoning with the choices made during that time.