American workers are in a pessimistic mood. Who can blame them? A gradually cooling labor market and persistent affordability challenges make too many feel like it’s impossible to get ahead. And unlike our experience of the past 25 years, a job market boost alone wouldn’t necessarily be enough. In housing and other areas, workers need greater supply and lower prices, which simply adding more jobs won’t achieve.
The still low unemployment rate fails to capture worker pessimism. People’s feelings about the job market hinge on their experience of it and how that shapes their expectations of the future. On that basis, there’s reason for concern. The percentage of workers between the ages of 25 and 54 who are employed peaked a year ago. The rate at which companies hire workers has been low since the latter part of 2023 and is reflected in the Conference Board’s monthly consumer confidence report where 20% of respondents now say jobs are hard to get.