Americans expect largest rise in unemployment since COVID-19 — New York Fed

Concerns about rising unemployment among US citizens have reached levels not seen since the COVID-19 pandemic, according to a recent survey by the Federal Reserve Bank (Fed) of New York. The number of respondents expecting the unemployment rate to rise over the next year jumped 4.6% to 44% in March, the highest level since April 2020.

The perceived likelihood of personally becoming unemployed by 2026 rose to 15.7%, with particular concern expressed among households earning less than $50,000 annually. At the same time, expectations of voluntarily leaving the labor force increased to 18%. Yahoo Finance analysts note these anxieties coincide with growing global economic uncertainty.

Nevertheless, the latest data on the US labor market remains strong, the platform's experts emphasized. In March, the unemployment rate was 4.2%, and 228,000 new jobs were created.

The New York Fed’s survey also revealed an increase in inflation expectations among the population for the year ahead, reaching 3.6%. Yahoo Finance analysts warned of a possible rise in prices in the US due to escalating trade tensions with China.