So Money with Farnoosh Torabi

Episode 1914 – Ask Farnoosh: Inside the Slowing Job Market (and How to Protect Yourself)
Date: December 5, 2025
Host: Farnoosh Torabi

Overview

This episode dives into the recent signs of a cooling job market and practical steps listeners can take to safeguard their finances. Farnoosh weaves in recent economic headlines, including job reports, housing market predictions, and trends in youth financial literacy, while answering audience questions on topics like career transitions, layoffs, and investing strategies. The tone is reassuring, practical, and forthright, guiding listeners to both weather economic uncertainty and plan for their future.

Key Discussion Points & Insights

1. Slowing Job Market: What It Means and How to Prepare

• ADP Payroll Report: Private employment fell by 32,000 last month, marking the third decline in four months.

  "Hiring managers are being more cautious. Some businesses are delaying expansion plans." – Farnoosh (04:20)

• Advice for Job Seekers:
  • Keep your resume in circulation, even when employed.
  • Update LinkedIn and personal websites before the year-end lull.
  • Be proactive—don’t wait for signs of market weakness to prepare.
• Federal Reserve Watch:
  • The Fed is monitoring this data for potential rate decisions; weak job growth may help the fight against inflation.

Notable Quote:

"Always be sending your resume out. Always. It's not just when you start feeling like things are cooling, you're always looking." – Farnoosh (04:45)

• Action Step: Refresh your professional materials and consider year-end as the deadline for active job search (through about December 16th).

2. 2026 Housing Market Predictions

• Redfin's Forecast:
  • Hottest Markets: New York City suburbs (Long Island, Hudson Valley, NJ, Fairfield County, CT), Syracuse (NY), Cleveland (OH), St. Louis (MO), Minneapolis (MN), Madison (WI).
  • Coolest Markets: Nashville (TN), San Antonio (TX), Austin (TX), and several Florida cities (Fort Lauderdale, West Palm Beach, Miami).
• Migration Trends:
  • Climate change and cost of living push movement to affordable, less climate-vulnerable regions.
  • Recent grads eyeing affordable rents in small/mid-sized cities.
• Cultural/Lifestyle Shifts:
  • Some southern markets cooling due to climate risk and changing state laws.

Notable Quote:

"[These] aren't really the most affordable places... but because they are so close to New York where the jobs are, they will for now be very popular. There is a lot of commuter attraction." – Farnoosh (07:05)

3. Year-End Tax Strategies

• Max Out Retirement Plans:
  • 401(k) limits for 2025: $23,500 (+$7,500 catch-up for 50+).
  • IRA limit: $7,000 (+$1,000 catch-up).
  • Solo 401(k) for small business owners.
• Charitable Giving:
  • Up to $108,000 via Qualified Charitable Distributions (QCD) from IRA for 70.5+ age group.
• Tax Loss Harvesting:
  • Offset gains by selling losing investments—useful if you had significant capital gains.
• Tech Tips:
  • Robo-advisors can automatically harvest losses; opt in if this aligns with your situation.

Notable Advice:

"If you haven't reached the max in your 401k, you might want to consider increasing your contributions before now and the end of the year." – Farnoosh (10:40)

4. Youth & Financial Literacy Trends

• Kids Are Investing Early:
  • Teens (and even tweens) are now investing for long-term goals like homeownership, using index funds and ETFs.
  • Schools increasingly offering hands-on financial literacy classes—with technology and real investing apps (e.g., Greenlight).
• Cultural Shift:
  • Young people are focused on compounding returns, not chasing get-rich-quick schemes.
  • The number of states requiring personal finance courses for high school graduation is rising (expected to be 30 by class of 2031).

Memorable Moment:

"If you had actually started to contribute just even, I don't know, 20 bucks a week to an IRA or an S&P 500 index fund at age 14, can you even imagine?" – Farnoosh (14:29)

5. Listener Q&A: Navigating Job Insecurity & Transitions

A. Sticking With a Good Employer During Uncertainty

• Scenario: Luz's husband is launching an uncertain business; Luz’s own job has solid benefits (Roth 401k, six weeks paid vacation, stock plan) but isn't fully fulfilling.
• Farnoosh’s Advice:
  • Stay put for now to maintain household stability.
  • Look for alternative roles within your current company.
  • Don’t jump for a lower-paying job unless benefits and stability are comparable.
  • Benefits often outweigh pay alone; value the full package.

Notable Quote:

"Given the circumstances... you bring the stability right now to the relationship and that's important." – Farnoosh (20:14)

B. Midlife Career Pivots: Risks and Rewards

• Scenario: Kismet, age 46, single mom, wants out of current tech role, considering a second master's degree.
• Farnoosh’s Guidance:
  • Don’t go into debt for another degree unless financially secure or employer will pay.
  • Explore tuition reimbursement benefits.
  • Set boundaries at work before quitting; open honest conversations with management about workload.
  • Collaborate with colleagues if workload is universally pressing; present a joint proposal to leadership.
  • Start mapping out post-parenting life now, and save deliberately for any education goals.

Key Encouragement:

"Let's remember who you are. This is important. We sometimes forget what we're capable of. You have the can do it ness to do whatever you want." – Farnoosh (28:02)

C. Handling Layoffs: Severance, Health Insurance, and Taxes

• Scenario: Tech worker laid off after 11 years. Facing questions about severance tax, COBRA, moving 401(k), unemployment.
• Practical Steps:
  • Severance & Taxes:
    • Contribute to a traditional IRA to offset taxable severance.
    • Utilize HSA contributions if available (tax-deductible).
    • Possible deductions for job search, moving, education—review with a tax professional.
  • COBRA vs. Marketplace:
    • COBRA maintains same coverage but at a higher (full) cost. For flexibility or cost, consider marketplace options (60-day window after job loss).
    • COBRA premiums typically not tax-deductible (except medical expenses exceeding 7.5% of AGI). HSA funds can pay COBRA premiums.
  • 401(k) & Unemployment:
    • Roll 401(k) into an IRA to preserve tax advantages (old 401k becomes inactive).
    • Apply for unemployment right away if eligible.

Clear Guidance:

"When you get laid off, your 401k immediately pretty much is defunct. That said, you can and you should roll that over into a traditional IRA... From there you can make contributions." – Farnoosh (39:53)

D. Best Way to Invest: Dollar Cost Averaging vs. Lump Sum

• Listener asks: Should I invest weekly, monthly, or once per year?
• Farnoosh’s Perspective:
  • Dollar cost averaging (DCA) smooths volatility, good for cautious investors.
  • Lump sum might yield higher long-term returns but requires more risk tolerance.
  • Farnoosh personally combines both strategies for flexibility and peace of mind.

Key Takeaway:

"Over long periods, lump sum investing may outperform dollar cost averaging because markets generally trend upwards... I do both." – Farnoosh (42:48, 43:25)

Memorable Moments & Notable Quotes

• On job seeker strategy:

  "Always be sending your resume out. Always." (04:45)

• On navigating benefits:

  "Sometimes we really need to appreciate the benefits we get at a company... a lot of times that outweighs everything else." (21:26)

• On midlife pivots:

  "You have the can do it ness to do whatever you want." (28:02)

• On financial self-advocacy:

  "Having an honest-to-goodness conversation with your leadership... just say, 'I'm really struggling.'" (31:50)

• On teaching kids to invest:

  "They're doing it by buying index funds and ETFs and tracking the market and not being impulsive." (13:45)

• On investment cadence:

  "Is your goal to make as much money as possible, or... with a little bit less of a shock value and a little bit more of a rested stomach?" (42:51)

Timestamps for Key Segments

• Slowing Job Market & ADP Report: 02:44–05:07
• Housing Market Trends: 06:12–08:44
• Year-End Tax Strategies: 08:45–13:41
• Youth & Financial Literacy: 13:41–17:31
• Q&A – Staying Put During Spouse's Entrepreneurship: 18:01–21:58
• Q&A – Midlife Career Pivot: 26:52–34:56
• Q&A – Layoff/Severance/Insurance/401(k): 34:56–40:57
• Q&A – Dollar Cost Averaging vs. Lump Sum: 41:03–43:25

Closing Thoughts

Farnoosh’s approach blends optimism with real-world pragmatism. Her advice is tailored to the realities of a shifting job and economic landscape, emphasizing both proactive planning and self-advocacy—whether you’re navigating a layoff, a midlife pivot, or simply looking to maximize your finances during uncertainty.

Next Week Sneak Peek:

• Guests: Amanda Holden (“How to Be a Rich Old Lady”) and NPR’s Sarah McMann on birth rates and their economic impact.
• Advice for 2026’s market volatility and demographic shifts.