Strategies to help psychologists navigate layoffs at mid- and late-career

Last year posed substantial challenges for the field of psychology and related professions. Working for the federal government was once considered stable employment, particularly in research, public health, and veterans’ affairs. However, significant layoffs of the federal workforce have eliminated many roles for psychologists. The cancellation of billions of dollars in federal research funding has also resulted in universities enacting hiring freezes, laying off staff, and terminating programsopens in new window. These changes are upending traditional career pathways for psychologists and causing many to reassess long-held assumptions about their professional trajectories.

While there are no hard statistics on how many psychologists are affected by workforce changes, many are well into their careers. Mid to late career can be a particularly tough time to make changes, as people likely have significant financial obligations but lack the advantage of younger colleagues in terms of career flexibility and fewer family responsibilities. More than two-thirds of health service psychologists are defined as mid to late career, with 26% being 21 to 30 years postdoctorate and 41% being 31 years or more postdoctorate, according to a 2021 APA survey.

To handle the seismic changes that layoffs or firings can bring at this age, experts suggest a multipronged approach that includes processing the loss, preparing for the next steps, networking, and, finally, getting yourself into the job market.

Experts recommend using the period of career transition for intense self-reflection. “This may even involve realigning your identity,” said Nadya Fouad, PhD, a counseling and vocational psychologist based in Milwaukee, Wisconsin. “Examine multiple future pathways and explore your options. Discover what feels appropriate for you and your background and examine how you have dealt with previous adversity.”

Before embarking on any kind of job search, take time to care for yourself emotionally, recommends Ann Steffen, PhD, a professor of psychology at the University of Missouri–St. Louis. Several of her previous students and colleagues have been impacted by program changes and buyouts within the Veterans Administration. Beyond unplanned changes to their own career trajectories, many expressed concerns about the impact of these cuts on colleagues, junior staff, and the programs they were leaving behind.

“I hope they give themselves a lot of grace and self-compassion for how tremendously difficult this has been,” Steffen said.

In fact, research shows that job loss in general can take a big toll on mid-career employees. A University of California, Berkeley, study following 18,500 individuals ages 50-plus who lost jobs between 1992 and 2018 showed that 11% of those with high depressive symptoms would not have experienced such levels of depression if they had kept their jobs (Picciotto, S., et al., The Journals of Gerontology: Series B, Vol. 79, No. 10, 2024).

Fouad agreed that it is vital for psychologists who have lost their jobs to practice self-compassion and take time to process the emotional complexity of such changes. However, the good news is that psychologists are trained in many skills that boost their adaptability and ability to pursue multiple career paths—an important aspect of self-awareness to keep in mind.

That notion is backed by research, which shows that many qualities shared by psychologists help people weather career shocks, as well. People who are reflective, communicate well, maintain a growth mindset, build relationships, and take advantage of training already have strong tools to help them succeed in new ventures (Akkermans, J., et al., Journal of Vocational Behavior, Vol. 119, 2020opens in new window).

“If you are facing a career shock, you can cope by building your resilience,” Fouad said. “Focus on emotional reflection, social interactions, and pathways to cope with adversity.” She also suggested looking back on times in one’s life when one has overcome adversity and thrived.

“[Older psychologists] have had to deal with difficulties before,” she said. “How did they function in the past? What strategies did they use to overcome them?”

Once you have taken time to process your emotions, prepare yourself in practical ways for entering the workforce in a new way. Psychologist and executive coach Terri Finney, PhD, encourages psychologists facing mid- and late-career shifts to adopt the mindset that they are not starting from zero.

“The first thing that I like to start off with is professional confidence. Start with a mindset shift about this transition. You’re not starting over; you’re starting from experience. The world is changing. You’re not behind; you’re aligning,” Finney said.

Again, there is a lot of good news for later-career psychologists: From coaching and consulting to legal firms and technology start-ups, many sectors value psychologists’ expertise, Finney said.

“Remember that we, as psychologists, have a way more in-depth understanding of humans than people in most other industries do,” she said. That includes transferable skills like emotional intelligence, communication, assessment, leadership, relationships, and systems thinking, among others. Psychological scientists also possess advanced skills in data analysis, research design, and critical thinking—competencies that transfer readily to many desirable and growing fields.

To promote those strengths, Finney recommends creating a “wins document” that lists one’s accomplishments, skills, training, and experience. Psychologists can draw on that set and tailor it to where they are applying, she said. It also serves a secondary purpose of remembering your worth during moments of impostor syndrome, added Finney. “It helps with grounding when you get anxious and remembering that you’re not irrelevant when you might feel like you’re irrelevant because the world is changing.”

She recommends using assessment tools like PRO-Developmentopens in new window and Gallup’s CliftonStrengths opens in new windowto help identify one’s strongest transferable skills. Those tools include specific and actionable language that psychologists can use to describe their skills on résumés, professional websites, LinkedIn profiles, and more. Consulting with a career coach can help you finesse wording, including about salary requirements, Finney added.

If needed, she also advises that psychologists take professional education or other short-term trainings to help bridge any gaps between their current competencies and future professional goals. Finney exemplified this approach when she transitioned from clinical to forensic psychology earlier in her career: “I took workshops all over the country through the American Board of Forensic Psychology. I attended conferences sponsored by the Colorado Bar Association. I attended family law conferences and joined an organization for lawyers and psychologists that work with child custody issues.”

Similarly, when she transitioned from forensic psychology to her present role in executive coaching, she recognized the need to refresh her skills. Knowing the approach differed markedly from therapy, she approached specialized training with the same rigor, eventually earning certification.

For psychologists considering changing specialties, the professional landscape, while challenging, offers some promise. For psychological scientists and applied psychologists, organizational psychology continues to show strong growth, and newly emerging growth areas include working with digital technologies, media, and artificial intelligence. For health service psychologists, fields like clinical child psychology and geropsychology are especially in demand.

“There simply are not enough psychologists trained in geropsychology,” said Karen Stamm, PhD, senior director of the APA Center for Workforce Studies. “Only 1% to 2% of psychologists describe this as their primary specialty. With a rapidly aging population, the need for psychologists in this area will only grow in the years ahead.”

Another factor to keep in mind when preparing applications is the continued reality of ageism, Fouad added. Studies show that when recruiters detect age-related clues on résumés, such as a birth date, graduation years, or an extensive work history, older applicants receive fewer callbacks, even when they possess the right skills for the job (Derous, E., & Decoster, J., Frontiers in Psychology, Vol. 8, 2017opens in new window). Applicants can age-proof their résumés by removing such signals and placing material about transferable skills and professional impact at the forefront.

Planning ahead is critical, particularly on the financial front. Research on individuals who successfully changed careers after age 45 shows that financial resources, family support, and being intentional about the career change led to better emotional outcomes (Vogelsang, E., et al., Innovation in Aging, Vol. 1, No. S1, 2017opens in new window). Fouad encourages fellow psychologists to prepare themselves, “particularly financially, for unexpected changes.”

Financial preparedness includes discussions with one’s spouse or partner—if relevant—about shared goals and working with a financial planner to draft a savings and investments plan. For those in private practice, creating a professional will is also essential. This legal document outlines the ethical and logistical details of handling clinical records and patient care in the event of illness, death, or sudden incapacity.

Once your thinking is clear about how to present yourself in applications or with potential employers, start tapping into your network, Finney advises. That includes professional colleagues, of course, but also friends, family, spouses, and, particularly important, mentors.

Drawing from her own experience with excellent mentors, Finney advises finding mentors and coaches to help “stay gritty and keep moving forward,” especially when facing the financial risks and uncertainties of starting a new career path. She also suggests tapping into one’s network as early as possible. If your situation allows it, “find some coaches and mentors before you have to walk away from your job, rather than waiting until you don’t have a job to start the process,” she said. “Just be mindful that it is a process, and it will take a while.”

Teraesa Vinson, PhD, is a counseling psychologist who transitioned from academia to the corporate world and specializes in executive search and recruitment. As a partner in the Heidrick & Struggles Chicago office, Vinson is well versed in the power of marketing one’s professional brand.

She encourages job hunters to break out of their comfort zones when seeking informational chats, introductions, or mentorship opportunities from new connections. “LinkedIn is your friend. People love to talk about their jobs and will generally have the altruism and goodwill to offer you some of their time,” she said.

Vinson also encourages psychologists to embrace small opportunities, whether short-term or part-time, to build confidence, skills, and visibility. This could eventually help to pivot into avenues like consulting, coaching, or human resources. “Say yes to things,” said Vinson. “When we all look back on our careers and reflect on how we got to this level, it’s not like we did everything on purpose. We just said yes to things along the way.”

Collectively, the smaller opportunities could prove to be stepping stones to something bigger. “When people come and say, Hey, would you mind consulting for this thing? Could you help me out with this situation? Can you speak at this event? Can you write a book chapter? I mean, it’s not a job per se, but say yes to those things because they make you look expansive to people when they are looking to bring somebody else into their organization,” Vinson added.

For example, she pointed to volunteering to sit on a nonprofit board as a way to demonstrate the range of one’s professional capabilities. “Joining a board shows that you are thinking outside of a role or job. You are lending your talent to another organization. You are seen as strategic, a problem-solver, a thinker,” Vinson added. “It shows you as somebody who is more sophisticated and demonstrates you can do something else outside of your lane.”

Applicants should also consider how to creatively optimize their LinkedIn profiles as part of their professional brand. Vinson recommends moving beyond traditional job titles in the “headline” section beneath one’s profile picture. “Think of it like a Twitter bio,” she said. “Use things that make you stand out like ‘CEO whisperer’ or ‘altruistic problem-solver.’” This creative approach appeals to recruiters doing keyword searches and demonstrates greater value beyond your listed experiences, per Vinson.

Late-career transitions, while difficult, may also open new possibilities. Steffen encourages those starting a new phase in their careers to remain hopeful. “Looking ahead, there’s space to reflect and test the waters—whether that’s professionally, financially, or in terms of personal identity,” Steffen said. “Opportunities don’t disappear; they continue throughout life. It’s important to remember that this is a process filled with big decisions and lots of smaller ones, and new possibilities will keep showing up along the way.”