Consumer confidence in the labour market has weakened further
Despite feeling better about their financial health and spending intentions, consumers indicated they believe the labour market has weakened further. Most notably, consumers’ reported probability of losing their job increased compared with a quarter ago (Chart 7). During follow-up interviews, some consumers appeared worried about their employment. One said, “Job security is low because there are so many of us that can do the same job.” In addition, consumers searching for work in the fourth quarter did so for a longer time than those searching in the previous quarter.
In this survey, reported perceptions about labour market conditions varied across demographic groups. Young people and those with a high school diploma or less education perceived more weakness in the labour market than other consumers.
At the same time, survey results show that the likelihood of voluntarily leaving a job increased from a quarter ago. Low-income and private sector workers in particular reported stronger intentions to switch jobs for better pay than others did.
Overall, consumer sentiment about labour market conditions fell to just below the survey average.
