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New York Fed: Tight Labor Market Affects Consumer Confidence
Summary: According to Jinshi's report, the sluggish labor market this summer has impacted Americans' views on the economic outlook. The latest consumer expectations survey from the New York Fed shows that in August, consumers' views on future job prospects and unemployment rate deteriorated, while short-term inflation expectations rose. In August, the proportion of people expecting the ...
According to Jinshi's report, the sluggish labor market this summer has impacted Americans' views on the economic outlook. The latest consumer expectations survey from the New York Fed shows that in August, consumers' views on future job prospects and unemployment rate deteriorated, while short-term inflation expectations rose. In August, the proportion of people expecting the unemployment rate to rise in the next year increased by 1.7 percentage points from July to 39.1%. At the same time, expectations of finding a new job if they were to lose their current job decreased by 5.8 percentage points to 44.9% - the lowest value since the New York Fed began tracking this data in June 2013. The pessimism towards the labor market may be justified. Since May, hiring has been weak. In August, the US added only 22,000 jobs, far below economists' expectations of adding 76,500 jobs. The unemployment rate rose to 4.3%, the highest level since 2021, and the number of people applying for unemployment benefits steadily increased in August.
