New York Fed Survey Shows Rising Job Market Fears

The Federal Reserve Bank of New York released its October Survey of Consumer Expectations on November 9, indicating that Americans are increasingly concerned about the labor market. Projections that the jobless rate will be higher in one year have reached their highest level since April 2020. While survey respondents reported a higher chance of finding new work after a job loss, they simultaneously perceived a greater risk of involuntary job loss.

These consumer sentiments contrast with government data from the previous Friday, which showed an unexpected gain of 165,000 jobs in October and a jobless rate of 4.1%. Despite the discrepancy between sentiment and data, inflation expectations remain steady at a one-year projection of 3.9%, which stays above the 2% target set by the Federal Reserve System.

Federal Reserve officials are expected to raise interest rates at their early December policy meeting to combat these persistent inflation levels.