Washington
CNN
—
America’s sluggish job market affects people’s mood.
The Conference Board’s latest consumer survey shows that Americans are most pessimistic about the current health of the U.S. economy and the future of the job market.
The monthly survey’s consumer confidence index fell to 98.7 in September, down from an upwardly revised 105.6 in August. That decline was worse than economists had predicted.
“Consumer confidence fell to the bottom of a narrow range in the last two years in September,” Dana Peterson, chief economist at the Conference Board, said in a release. “September’s decline was the largest since August 2021 and all five components of the index worsened.”
The US job market is in good shape, but it’s running much slower these days than it has in recent years. In July, employers had the lowest job openings since January 2021. The unemployment rate was 4.2% in August, down from 3.4% last seen in 2023. The pace they did when the US economy first recovered strongly from the Covid-19 pandemic.
Americans took note. Peterson said, “The weaker-than-expected survey results reflect consumer concerns about the labor market and reactions to fewer hours, slower wage growth, fewer job opportunities — despite a very healthy labor market, with low unemployment, few layoffs and high wages.”
The fate of the job market is unclear. It may continue to weaken, perhaps entering recessionary territory, or it may stagnate and accelerate. The Federal Reserve last week delivered a sweeping interest rate cut, bringing rates back from a 23-year high that lasted more than a year. The central bank’s top chairman, Jerome Powell, told a news conference that the aggressive action reflects the central bank’s commitment to protecting the health of the labor market.
There may be some light at the end of the tunnel. Employers may hold back on hiring for two good reasons: the upcoming U.S. presidential election and interest rate uncertainty, CNN previously reported. That means hiring will pick up once the country learns whether Vice President Kamala Harris or former President Donald Trump will become the next president, and if the Fed continues to cut interest rates, it will ease pressure on businesses of all sizes.
