A growing sense of unease is spreading among U.S. workers, even as official statistics show a still-tight labor market. With unemployment remaining low, the disconnect lies in lived experiences—many individuals face persistent affordability issues and a cooling job landscape. Since late 2023, hiring momentum has slowed, and recent data from the Conference Board reveals that one in five consumers now believes employment opportunities are difficult to secure. The employment rate for prime-age workers (25 to 54 years old) reached its peak about a year ago and has since plateaued. Experts argue that simply increasing job creation will not resolve deeper structural challenges, particularly in housing, where constrained supply and high prices continue to limit upward mobility. Worker sentiment, shaped by daily realities rather than aggregate metrics, suggests that economic optimism may be waning despite favorable headline numbers.
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Worker Pessimism Is Part of the US Economy Now
Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world n nConnecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world n nAmerican 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. n nThe 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.