Americans Expect Unemployment Rise to Pandemic Highs, NY Fed Survey Finds

A recent survey by the Federal Reserve Bank of New York reveals that American consumers' expectations of rising unemployment have reached their highest level since April 2020, with 44% anticipating higher joblessness over the next year. Concerns about job security have also increased, with 15.7% of respondents feeling they might lose their jobs—a 12-month peak. The survey indicates that these worries are particularly pronounced among individuals earning under $50,000 annually. Economic uncertainty, driven by shifting federal policies and tariff-related factors, is contributing to a more cautious consumer sentiment, which could affect spending and business investment. Additionally, inflation expectations have risen, with consumers anticipating a 3.6% increase in prices over the next year. Despite the grim outlook in consumer sentiment, the broader economy continues to show resilience, maintaining a streak of job gains and strong consumer spending.