Fed Survey: High Prices Dominate Concern, Job Anxiety Rises
Most Americans still rank high prices as a top concern in 2025, while concerns about the job market are also rising, according to the Federal Reserve's annual survey. These findings signal that affordability pressures have not abated, even before the Iran war subsequently drove up gasoline prices and accelerated inflation.
Amid near-zero job growth last year, 42% of adults said finding or keeping a job was a small or large concern, up from 37% in 2024. At the same time, about 9 in 10 respondents expressed concern about rising prices, according to the Fed's 2025 Survey of Household Economics and Decision Making, conducted in October.
The aggregate financial picture remains relatively stable, with 73% of adults describing themselves as “financially okay” or “living comfortably,” the same as in the 2024 survey. However, that percentage drops significantly among those without a high school diploma, Black Americans, those under 30, and respondents earning less than US$25,000 per year, highlighting the financial resilience gap between groups.
The survey also highlights sharper cost-of-living pressures for certain groups. Nearly a quarter of renters reported being behind on rent in the past year, while about half of adults under 30 reported still living with their parents. About 47% of those under 30 received financial assistance from outside their household in the past year.
For the first time, the survey asked about the use of generative AI: 1 in 4 workers reported using it in the past month, and 81% of users said it saved time. AI users are more likely to see AI as a career enhancer than a job displacer, amidst concerns about inflation, the job market, and affordability. 5 Key Points
-About 9 in 10 respondents are concerned about price increases in 2025.
-Concerns about employment rose to 42% from 37% in 2024.
-73% feel financially “fine/comfortable,” but this is weaker among vulnerable groups (low education, Black, under 30, income <US$25,000).
-Nearly a quarter of renters have fallen behind on rent; about half of those under 30 live with their parents; 47% receive financial assistance.
-Generative AI adoption is starting to show: 1 in 4 workers uses AI, and 81% of users find it more efficient. (gn)
Source: Newsmaker.id
