Consumer Confidence in Job Prospects Hits 5-Year Low
American consumers are increasingly pessimistic about their job prospects, according to new Conference Board data.
The June installment of the board’s Employment Trends Index (ETI), released Monday (July 6) showed that the share of consumers who reported that “jobs are hard to get” climbed to 22.5% last month, its highest level since January 2021.
Meanwhile, initial unemployment claims rose for the second straight month to 222,000, the highest monthly average logged thus far in 2026.
“Consumers’ pessimistic hiring outlook fueled much of June’s weakness in the ETI, which is consistent with the prevailing ‘low hire, low fire’ labor market environment,” Jannik Schulz, economic research associate for The Conference Board, said in a news release.
“Nonetheless, the number of people on non-farm payrolls remains elevated and has been ticking higher in recent months,” Schulz added. “Meanwhile, the number of initial jobless claims also increased in June. Although unemployment claims remain near historical lows, the ETI interprets the increase as a negative signal for the labor market ahead.”
The overall ETI fell to 106.69 in June for the second consecutive month, from an upwardly revised reading of 106.90 in May, a sign that employment is likely to shrink.
The board noted some positive contributions to the ETI, including an increase in the number of small businesses reporting that jobs are “not able to be filled right now,” from an “unexpectedly low” 29% in May to 32% last month.
“The share of involuntary part-time workers continued to ease, falling to 17.1% in June from 17.4% in May,” the release added. “Employment in the temporary help services industry increased again in June and rose by 47,800 in the first half of the year. Job openings remain elevated, contributing positively to the ETI for the third consecutive month.”
Meanwhile, recent PYMNTS Intelligence research shows that while a steady income gives many consumers confidence, that confidence is enough to protect their financial resilience.
“Consumers generally still feel good about their employment prospects, yet the households under the most strain are showing weaker resilience, lower emergency readiness and less room to absorb a financial shock,” PYMNTS wrote last week. “In other words, job security is starting to look like a strong engine in a car with very little fuel in the tank. It helps, but it does not guarantee the trip will go smoothly.”
The research noted that roughly two-third of Americans lived paycheck to paycheck in early 2026. Of that group, around 40% to 45% said they could comfortably cover their monthly expenses, while 20% to 25% said they consistently struggled to pay their bills.
