Americans are becoming more concerned about losing their jobs, and confidence in the job market is falling. The Federal Reserve Bank of New York released a report on Monday that shows how people across the country are feeling about the economy. The results aren’t too hopeful.
According to the Survey of Consumer Expectations, more people now believe that unemployment will go up in the next year. In March, 44% of people said they expect the unemployment rate to rise over the next 12 months. This number is the highest it’s been since April 2020, when the COVID-19 pandemic was at its peak. Compared to the previous month, this is a jump of 4.6 percentage points. The concern is spread across all ages, income levels, and education groups.
People also feel more at risk of losing their jobs. The survey says the chance of becoming unemployed in the next year rose by 1.6 percentage points, reaching 15.7%. That’s the highest it has been since March 2024. The biggest rise in fear came from lower-income households earning under $50,000 a year.
Not only are people worried about losing their jobs, but they also feel less confident about finding new work if that happens. The number of people who believe they could find a job after losing their current one dropped slightly to 51.1%, down by 0.1 percentage point. It may not sound like much, but even a small drop shows a shift in how Americans view the labor market.
At the same time, concerns about rising prices are also growing. Inflation expectations for the next year went up by 0.5 percentage points to 3.6%. That means many Americans believe the cost of everyday items will rise more than before. Expectations for inflation over the next three years stayed the same at 3%. For the next five years, inflation expectations fell slightly by 0.1 percentage point to 2.9%.
The cost of specific items is also expected to rise. Food prices are expected to grow 5.2% over the next year, a small increase from last month, but still the highest level seen since May 2024. Medical care is expected to get more expensive, too, with a rise of 0.7 percentage points to 7.9%. Rent is also likely to go up by 0.5 percentage points, hitting 7.2%.
But not everything is expected to get more expensive. The cost of gas is expected to fall by 0.5 percentage points to 3.2%, and college education costs are also expected to drop slightly by 0.2 percentage points to 6.7%.
The survey also examined people’s feelings about their overall financial situation. More households said they are finding it harder to get credit or loans. Some even said their financial outlook has become worse in the last month. Furthermore, fewer people believe that stock prices will rise soon. Optimism about the stock market is now at its lowest point since June 2022.
This overall picture shows that Americans are facing more financial stress. Worries about jobs, rising prices, and limited access to credit are adding to people’s struggles.
All of this is happening as the U.S. economy faces more uncertainty. Former President Donald Trump has taken steps to change the country’s trade policies. His actions have led to trade tensions with major partners like China, Canada, Mexico, and the European Union, which have resulted in new import taxes, also known as tariffs.
Many experts believe these tariffs will cause prices to rise even more. When companies have to pay more to bring goods into the country, they often pass those extra costs onto shoppers. This means regular people might end up paying more for things like food, clothing, and electronics.
There is still much uncertainty about how big this price increase will be or how long it will last. The Trump administration has said it is trying to get better deals for the U.S. through these trade talks. But until new agreements are made, prices could continue to rise, and the economy may stay uncertain.
In simple terms, Americans are feeling the pressure from all sides. They’re more worried about losing their jobs, they’re unsure about finding new work, and they expect to pay more for basic needs. Even though gas and college costs might come down a little, rising food, rent, and healthcare prices are weighing heavily on people.
The New York Fed’s survey clearly shows how people feel, not just what the numbers say. It shows that behind the job reports and inflation stats, real families are struggling with real concerns. While some government numbers show economic growth, the average person may not feel that growth in their daily lives.
Whether it’s the fear of not being able to pay rent or the worry of not being able to get a new job, this survey highlights just how uncertain things feel for many Americans right now. And with growing pressure from global trade changes and rising prices, it’s likely these feelings won’t go away anytime soon.
Disclaimer: This article has been meticulously fact-checked by our team to ensure accuracy and uphold transparency. We strive to deliver trustworthy and dependable content to our readers.
