Americans feel burdened by activities such as spending vacations
Americans are feeling less concerned about the economy and their job prospects. According to a new Gallup report, confidence in finding a quality job fell in November to its lowest level since early 2021.
One-third of adults say it’s a good time to get a job – down from 44% last year – and nearly as many say it’s a bad time.
That volatility can come from the fact that the job market has slowed down in recent months, many workers are holding on to their current positions and layoff notices have already exceeded 1.1 million – the highest level since 2020.
That turn to safety pessimism combined with the government’s last 43-day weeks, delayed federal paychecks, disrupted benefits and forced the release of key economic data back.
When the September Jobs Debs Report dropped on November 20 after a seven-week delay due to the shutdown, it presented a puddled picture. The report showed slower-than-expected average employment growth paired with an increase in the unemployment rate to 4.4%. This mixed picture cannot convince Americans who are already on the edge.
The pessimism of the Gallup report reflects a broad reversal in how Americans view the economy. Gallup’s economic confidence index fell to 30 in November, a 17-month low. 40 percent of adults now describe current conditions as “poor,” and nearly two-thirds say the economy is improving.
The index has been weak for more than a year, after a gradual improvement for two years from 2022, confidence is again present at the comfort of 3025 before leaving last month.
Economic concerns have spilled over into holiday spending
Shift in Mood revisits holiday spending strategies, too. Gallup’s November survey finds that consumers expect to spend an average of $778 on gifts this season, down 229 from October.
This marks a sharp drop in MidsASASS for Midsup Low and low income households are driving most of the decline, while non-middle income consumers are holding on.
But despite shrinking budgets, a majority of Americans (53%) say they plan to spend as much as last year (despite the sharp drop in holiday budgets). However, many will be relying on loans to make the holidays possible.
A recent study by the American Institute of CPAS, or AICPA, found that nearly half of vacation shoppers plan to take out gift credit or travel. Among them, 79% plan to use credit cards, more than half do not expect to pay their balances in full and many will rely on buying now, pay for the latest services (Bnpl) to fill the gap.
Americans are still planning to spend, but many are doing so under financial pressures and holiday pressures, reflecting the same trend as the outlook for the job market and the economy.
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