Americans are more worried about the job market and their job security than they are about inflation, according to the latest Survey of Consumer Expectations from the Federal Reserve Bank of New York.
Survey respondents said they expect inflation to drop to 3% within the next three to five years, the NY Fed reported. Respondents also believe credit is easier to get now than it was in the recent past, and that trend should continue. Although reduced inflation and loosened credit should bode well for the economy, people are still concerned.
Consumers also predicted unemployment rising in 2026 and believe they may have a harder time finding a job if they are laid off next year. Those under the age of 60 and those who attended “some college” were the most concerned, according to the report.
“People know that if inflation hits, they will feel it, but they can adjust their spending to offset it,” said Melanie Musson, finance expert at Quote.com. “Inflation hurts, but it’s survivable. Meanwhile, losing your job can feel like there is no solution.”
Gen Z Feels Heavy Uncertainty
Sofiya Deva of the AI-powered personal finance app Vera, said these emotions may be especially prevalent in Gen Z.
“They’ve been nicknamed ‘the most anxious generation.’ And I think a lot of that really does carry over into finances,” she said.
Seeking personalized financial advice, and even relying on AI tools, could be part of the solution for any generation, Deva added.
“[Finance is] a very personal topic. In some ways it’s even more taboo than religion and politics,” Deva said. “Having a safe, judgement-free space where you can share where you are financially, plus your anxieties, hopes and fears, can help.”
Learn More: 8 Smart Ways Frugal People Are Living Like There’s Already a Recession
Consider This: 6 Safe Accounts Proven To Grow Your Money Up To 13x Faster
How To Prepare for Job Loss
Of course, it helps to speak to a professional to make a plan. Even before that, you can take tangible steps to put yourself in a better position for job loss, such as bolstering your savings by taking on a side gig or a seasonal job.
“If you lose your job or get your hours cut, a robust emergency fund can help you stay afloat while you figure out a long-term solution,” Musson said.
She also suggested starting your job search before the hammer falls on your current position.
“Start looking for more secure employment now instead of waiting until you’re desperate,” Musson said.
Keith Spencer, career expert at FlexJobs, agreed.
“One of the best ways to prepare for a potentially unexpected job search is to start before you have to,” he said. This includes keeping your resume updated with promotions, awards and accomplishments.
“Also, building and fostering relationships with your network isn’t something to consider only during a job search,” he said. “Making this a consistent part of your professional life will be helpful when there are unexpected bumps in the road.”
Finding a New Job: Expert Tips
The 2025 Financial Pulse Report from FlexJobs revealed that 25% of workers are more concerned about being laid off today than they were six months ago, supporting the NY Fed’s findings.
If the worst-case scenario happens, Spencer said, go easy on yourself.
“Experiencing a layoff is challenging and stressful in a lot of ways, so it’s important to give yourself time to process everything,” he advised. “Working through some of the feelings that come along with being laid off will help you find your footing in the process of starting a new job search.”
Like Musson, he recommended taking advantage of the time of year to take on temporary work to pay the bills as you gear up for a job search.
“A seasonal job can help bridge the financial gap that comes from losing a job, and also give someone more time to figure out what job they want to work towards on a long-term basis,” he said.
As you begin your search, make sure you have the basics down:
- Refresh your resume and cover letter
- Update social media profiles
- Tap into your network to refresh connections and build new ones
Once that’s done, having a solid plan is key, according to Spencer.
“Set some daily, weekly and even monthly goals to help keep you on track during your search. With a clear plan and focus, it will be a much easier process to manage and will help you maintain your motivation and productivity,” he concluded.
More From GOBankingRates
- Mark Cuban Warns 4 Key Industries Could Crumble in the Next Recession
- Here's What Retirees Wasted the Most Money On in 2025 -- and How To Avoid It in 2026
- How Middle-Class Earners Are Quietly Becoming Millionaires -- and How You Can, Too
- 6 Safe Accounts Proven to Grow Your Money Up to 13x Faster
This article originally appeared on GOBankingRates.com: Americans Are Worried More About This Money Issue Than Inflation — Here’s Why
