Anxiety grows about jobs and economic prospects

Recent surveys point to growing pessimism among the public in the United States over the economy and job market, as sentiment deteriorates sharply across key indicators.

US consumer sentiment dropped about 11 percent to 47.6 in April, according to the University of Michigan's Surveys of Consumers, marking a sharp monthly decline and the lowest level on record, survey director Joanne Hsu said.

The setback occurred in all demographic groups across age, income and political affiliations, with all other indexes in the survey registering losses. The one-year outlook for business conditions plunged about 20 percent and now stands 6 percent below its level a year earlier.

"Assessments of personal finances declined about 11 percent, with consumers expressing a substantial increase in concerns over high prices and weaker asset values," Hsu said.

"Buying conditions for durables and vehicles worsened, again on the basis of high prices."

Many consumers blame the Iran conflict for unfavorable changes to the economy, she said.

People's views of the job market have also deteriorated, according to Gallup.

A Gallup poll and analysis released in March found that US workers were worse off at the end of last year than anytime over the previous three years. For the first time since Gallup started tracking workplace life evaluation two decades ago, a larger share of workers reported struggling in their life (49 percent) than thriving (46 percent).

The thriving rate had been steady at 57 to 60 percent from 2009 to 2019 and remained above 50 percent until the end of 2025, Gallup reported.

The poll found that in the fourth quarter of last year, only 28 percent of workers said it was a "good time" to find a quality job, while 72 percent described it as a "bad time". This marked a sharp reversal from mid-2022, when roughly 70 percent viewed it as a good time to find a job.

"The 42-point decline since then represents the largest collapse in job market confidence Gallup has recorded in the past four years," the report said.

The low thriving rate coincided with low worker engagement, which dropped to 31 percent, the lowest level in a decade.

Workers under 34 with a college education were most pessimistic — only 19 percent of them said it is a good time to find a quality job.

Young people seemed to be more restless and less satisfied with their current job situations. About 57 percent of millennials and 61 percent of Generation Z reported they were actively seeking a different job.

Uncertain future

More generally, uncertainty about the future is widespread.

A February survey by research company Verasight found US citizens expect continued economic pressure, political instability and rising political violence this year.

According to the poll, 64 percent expect further increases in everyday prices this year, 56 percent lack confidence that their incomes or savings will keep pace, and 53 percent anticipate growing political violence and instability.

The consumer price index, a key measure of inflation, rose 3.3 percent in March from a year earlier, according to the US Bureau of Labor Statistics, up nearly 1 percentage point from February's 2.4 percent.

"Last week's economic data show just how fragile the economy is, even before the fallout from the Iran war hits with full force," Mark Zandi, chief economist at Moody's Analytics, posted on X on Sunday."Critical to whether the economy can avoid a recession is whether the consumer holds tough, and that looks increasingly iffy."

Zandi listed major signs for a gloomy economic future, including stalled job growth, slump in sentiment, high and accelerating inflation cutting into real incomes, and higher interest rates.

The high inflation rate in March was primarily attributed to high oil prices caused by the Iran war, but that was just the beginning, he said.