Unemployment Concerns Rise as More Americans Search for Jobs, Says NY Fed Survey
A recent survey from the Federal Reserve Bank of New York reveals a growing sense of uncertainty in the U.S. job market, with unemployment concerns hitting their highest level in a decade. According to the survey, the average expected chance of becoming unemployed within the next four months spiked to 4.4% in July, up from 3.9% the previous year. This marks the highest level since the survey’s inception ten years ago.
Additionally, the likelihood of workers moving to a new employer also saw an increase, climbing to 11.6% last month compared to 10.6% in July 2023. The survey highlighted a significant rise in job search activity, with 28.4% of respondents actively looking for new employment opportunities in the past four weeks— the highest percentage since March 2014.
This surge in job search activity coincides with a decrease in job satisfaction, particularly concerning wage compensation, benefits, and promotion prospects. As the Federal Reserve continues to monitor the labor market, the unemployment rate has now reached 4.3%. Investors are also anticipating revisions from the Bureau of Labor Statistics, which may adjust previous job growth figures, potentially removing up to a million jobs from prior reports.