Americans are increasingly anxious about their job security, with a growing number actively seeking new employment opportunities, according to a new survey from the Federal Reserve Bank of New York. The findings paint a picture of a labor market under strain, with more people fearing job loss and looking for work than at any time in the past decade.
The survey, part of the New York Fed's thrice-annual Survey of Consumer Expectations Labor Market Survey, revealed that 28.4% of respondents have been searching for a new job in the past four weeks. This figure marks the highest level of job-seeking activity since March 2014, up sharply from 19.4% in July 2023. This increase in job search activity coincides with a rise in concerns about unemployment, with the average expected likelihood of becoming unemployed in the next four months reaching 4.4%, the highest in the survey's 10-year history.
These findings come at a time when the U.S. unemployment rate has risen to 4.3%, up from its post-pandemic low of 3.5%. The increase in job search activity and unemployment concerns suggests that many Americans are growing uneasy about their current employment situations, even as other economic indicators, such as consumer spending and confidence, have shown signs of stability.
Economists and labor market analysts are closely monitoring these trends, with some warning that further deterioration in the labor market could have broader economic implications. Ahmed Riesgo, chief investment officer at Insigneo, expressed concern that continued weakness in the job market could ultimately drive down overall economic performance. "The problem is that we continue to see weakness in the labor market, and we think that that's going to ultimately be what drives this market lower," Riesgo told Yahoo Finance. He added that the U.S. consumer, who has remained resilient due to stable employment, could falter if job losses increase.
Despite these concerns, some experts argue that the U.S. economy remains in a relatively strong position. Torsten Slok, chief economist at Apollo Global Management, noted that while the labor market is showing signs of strain, the broader economy continues to grow at a steady pace. "The U.S. economy is doing just fine with steady growth," Slok wrote in a note to clients, pointing to stable data in areas such as restaurant and travel bookings, as well as credit card and bank lending.
However, the rising number of Americans seeking new jobs and fearing unemployment reflects an underlying unease that could be difficult to shake. Guy Berger, director of economic research at the Burning Glass Institute, attributed the growing anxiety to a combination of factors, including reports of layoffs and the experiences of people within individuals' social networks. "The vibes have gotten worse," Berger said, adding that while the situation is not as dire as during the 2008 financial crisis or the early days of the COVID-19 pandemic, the risks are nonetheless higher than in recent years.
The New York Fed's survey also highlighted disparities in job search activity across different demographic groups. The increase in job seekers was most pronounced among respondents over the age of 45, those without a college degree, and those with annual household incomes below $60,000. This suggests that the economic recovery may be leaving some workers behind, particularly those in lower-income brackets and older age groups.
Rick Goins, a 64-year-old Houston-area resident with decades of experience in communications, exemplifies the struggles many older workers are facing. Despite his extensive experience, Goins has not secured a full-time role since 2016, relying instead on a series of contract positions. "I'm not old enough to retire, and not old enough for Medicare," Goins told NBC News, expressing frustration with the job market. He noted that he has often been "ghosted" by potential employers, leading him to suspect that ageism may be hindering his job search.
