Americans' Job Anxiety Surges to Highest Level in a Decade

Even though the U.S. unemployment rate remains low, Americans are becoming increasingly uneasy about the state of the job market. Recent data shows a sharp rise in job-related anxiety, adding to a list of economic warning signs that could indicate trouble ahead.

What the numbers say

According to data from the University of Michigan analyzed by the Bank of America Institute, 66% of consumers expect unemployment to rise over the next year—the highest level of concern in a decade.

Other measures also point to growing unease:

• The ZipRecruiter Job Seeker Confidence Index fell by 3.6 points in the first quarter of 2024.
• A separate Glassdoor index reported similar declines in employee confidence.
• Government workers—who have faced disruptions in recent months—experienced the steepest drop in confidence, according to ZipRecruiter.

A Disconnect between feelings and actions

Despite the rising anxiety, consumer behavior doesn’t always reflect economic pessimism. Federal Reserve Chair Jerome Powell noted this contradiction at a recent press conference.

"There have been plenty of times where people are saying very downbeat things about the economy and then going out and buying a new car," Powell said.

Here is what you need to know

The biggest challenge in the labor market right now is hiring, according to Julia Pollak, chief economist at ZipRecruiter.

• Hiring rates have returned to 2013 levels, making job searches more difficult.
• There are now more applications per job posting than a year ago.
• Those hit hardest are workers in the middle of the labor market, particularly those with some college education or a bachelor’s degree.

In a report to Axios, Pollak describes this as a problem for a "pretty large share of the workforce," highlighting the struggles of many Americans looking for new opportunities.

Looking ahead

While the job market remains stable on the surface, the rising anxiety among workers could be a sign of bigger economic challenges on the horizon. Whether these concerns turn into reality will depend on future hiring trends and Trump administration's economic policies in the months ahead.