Workers' confidence in securing a new job soon drops to its lowest point ever recorded

Americans Face Growing Concerns Over Job Prospects and Debt

According to the latest consumer expectations survey from the New York Federal Reserve, more Americans believe it will become harder to secure employment and are increasingly worried about missing upcoming debt payments.

The survey revealed that the likelihood consumers felt they could find a new job within three months after losing one dropped by 4.2 percentage points from November to December, reaching just 43.1%. This marks the lowest confidence level since the New York Fed began monitoring this data in June 2013.

Overall, the findings painted a pessimistic picture regarding prices, personal finances, and the job market. The New York Fed noted that expectations for inflation over the next year edged up to 3.4% in December, with uncertainty around inflation also increasing.

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The New York Fed attributed the drop in job confidence mainly to individuals with annual household incomes under $100,000, with the effect most noticeable among people over 60 and those whose highest education is a high school diploma.

For respondents over 60, only about 33.1% believed they could quickly find new work if needed, compared to nearly 46% among those younger than 40.

Despite these concerns, not all labor market expectations were negative. The survey found that the perceived chance of the national unemployment rate rising in the next year actually declined to 41.8% from November to December.

When it comes to personal finances, Americans reported a mixed outlook. While more people felt their current financial situation had improved, the perceived risk of missing a minimum debt payment in the next three months climbed to 15.3%—the highest since April 2020.