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- Americans’ confidence in finding a new job is crumbling (cbsnews.com)
Job Market Jitters: Workers’ Confidence Dips Amidst Economic Uncertainty
A recent survey reveals a decline in job seekers’ confidence, reflecting growing concerns about the U.S. job market. The Federal Reserve Bank of New York found that the perceived probability of landing a new job after losing one has dropped to its lowest point since 2013. Simultaneously, anxieties about potential job loss are increasing, with more Americans anticipating a higher unemployment rate in the coming year.
This shift in sentiment aligns with a generally pessimistic economic outlook. Recent polls show a majority of Americans believe the economy is worsening.
The labor market has faced scrutiny following weaker-than-expected job growth in July and August, along with downward revisions for prior months. August saw a significant slowdown in hiring, and the unemployment rate ticked upward.
Experts suggest employers are hesitant to expand their workforce due to economic uncertainty, prompting workers to stay put rather than pursue new opportunities. While some surveys indicate many Americans plan to seek new jobs in the next year, the overall rate of job changes has slowed considerably since the “Great Resignation” of 2022.
The balance of power in the labor market appears to be shifting back towards employers. Analysis from Bank of America reveals a declining trend in employee turnover, approaching pre-pandemic levels.
This is attributed to a decrease in job opportunities and overall unease about the labor market. Economists warn that continued stagnation could lead to increased unemployment and layoffs, further weakening the labor market.
The Federal Reserve, responsible for maintaining a healthy job market and controlling inflation, has recognized the growing risks to employment. This increases the possibility of a rate cut at their upcoming September meeting.
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- Americans’ confidence in finding a new job is crumbling (cbsnews.com)