That's according to the New York Fed's latest consumer survey, which showed respondents making above $100,000 are more pessimistic about the jobless rate being higher in 12 months from now compared to lower-earning workers.
There's a growing sense of "labor market gridlock," as some strategists have called it.
But it's not just sentiment that's turning lower.
Economists now expect the Bureau of Labor Statistics to revise earlier jobs data lower by hundreds of thousands of jobs.
Entrepreneur and former “The Bachelorette” contestant Jason Tartick urged Generation Z workers to “get hungry” and adapt quickly as they face one of the toughest job markets in years.
“Gen Z, I would say, get hungry,” said Tartick, author and host of the “Trading Secrets” podcast, about disappointing jobs data. “The focus has to be: How can you be resilient and adaptable to the change that is so constant?”
A New York Federal Reserve survey conducted in August found a sharp rise in consumers who believe it would be harder to find new employment if they became unemployed — the highest rate in over a decade.
The pessimism comes after last week’s disappointing jobs report showed continued economic uncertainty.
New graduates face particularly steep challenges. The share of unemployed Americans who are new to the workforce reached a 37-year high, with 13.4% of unemployed workers in July classified as “new labor force entrants” with no prior work experience, Axios reported.
Despite current struggles, Tartick predicted the generation will become “the wealthiest, most powerful generation of all time by 2040,” citing a Bank of America study projecting their wealth will multiply fivefold in the next five years.
“Thirty million plus small businesses right now are trying to integrate AI,” Tartick said, suggesting Gen Z’s technological adaptability positions them well for future opportunities. He recommended graduates consider gig work and freelance opportunities while gaining experience.
The entrepreneur, who disclosed earning $2.7 million last year through podcasting, investments, and speaking engagements, also advocated for greater financial transparency to help young workers navigate economic challenges.
“We need to stop weaponizing blaming and shaming people when they talk about their income,” Tartick said, calling for improved financial literacy education starting in elementary school.
The job market difficulties extend beyond employment to housing affordability. First-time homebuyers now average 38 years old, compared to 28 in 1991.