Americans’ Job Market Confidence Drops to Lowest Since 2013

Recent data and surveys reveal growing concerns about the U.S. labor market, with Americans feeling increasingly pessimistic about their chances of finding new jobs amid slowing hiring and a rising unemployment rate, which reached 4.3%, the highest in four years. The Federal Reserve Bank of New York's survey showed the lowest probability of finding a new job since 2013, while job additions remain weak, with only 22,000 jobs added in August. Despite stable inflation expectations around 3% for the coming years, the Fed is preparing to cut interest rates in response to the faltering labor market and economic uncertainties exacerbated by President Donald Trump's tariffs. The combination of slower hiring, tariffs, and inflation pressures has shifted the Fed's focus toward supporting employment, with a quarter-point rate cut expected at the upcoming meeting and the possibility of further cuts depending on upcoming inflation data. Analysts warn that weakening jobs could slow consumer spending and economic growth, though lower rates might boost business investment and housing. Market reactions have been mixed, with equities reaching highs amid expectations of a dovish Fed pivot, yet concerns about long-term economic health persist.