Americans pessimistic about jobs and economic prospects

Multiple recent surveys indicate rising pessimism among Americans about the economy and job market.

US consumer sentiment fell about 11 percent to 47.6 in April, according to the University of Michigan's Surveys of Consumers, marking a sharp monthly decline.

This is the lowest level recorded in the survey's history, said survey director Joanne Hsu.

The setback occurred in all demographic groups across age, income and political party.

All other indexes of this survey also fell. The one-year expected business condition index plunged about 20 percent and is six percent below last April.

"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." 

Hsu said that many consumers blame the Iran conflict for unfavorable changes to the economy.

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

A March Gallup poll and analysis showed that in the US workplace, American workers were worse off at the end of 2025 than anytime over the previous three years.

The poll showed that for the first time since Gallup started tracking life evaluation at the workplace two decades ago, more US workers reported that they were struggling (49 percent) in their life than thriving (46 percent).

The thriving rate had been steady at 57-60 percent from 2009 to 2019, and had stayed over 50 percent until the end of 2025, even during and after the pandemic, Gallup reported.

The poll found that in the last quarter of 2025, 28 percent of US workers said it was a "good time" to find a quality job, while 72 said it was a "bad time".

This marked a sharp reversal from mid-2022, when roughly 70 percent of workers 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," stated the report.

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

Employee engagement measures the involvement and enthusiasm of employees in their work and workplace. Highly engaged teams are critical to the success of an organization.

Workers under the age of 34 with a college education were most pessimistic — only 19 percent of them said it's 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 Gen Z reported they were actively seeking a different job.

Americans feel uncertain about the future in general.

A February survey by Versasight, a nonpartisan research company, found that Americans expect continued economic pressure, political instability and rising political violence in 2026. 

According to the survey, 64 percent of Americans expected the prices of everyday goods to continue rising this year, 56 percent were not confident that their income or savings will keep pace with rising costs, and 53 percent expected growing political violence and instability in the country.

The consumer price index, a key measure of inflation, rose 3.3 percent in March from a year earlier, the US Bureau of Labor Statistics reported last week. That's almost a one-point jump 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, 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 the major signs for a gloomy economic future: job growth stalled, sentiment slumping, high and accelerating inflation cutting into real incomes, the stock market going sideways, and higher interest rates.

The March high inflation rate was primarily due to high oil prices caused by the Iran war, but that's just the beginning, according to Zandi.

mayzhou@chinadailyusa.com