Americans are again fearful of losing their jobs, according to a survey from the Federal Reserve Bank of New York released Monday.
For the month of August, the average respondent in the New York Fed’s survey of consumer expectations said there was an 18.0% chance of losing their job in the next 12 months. That figure is a noticeable increase from the 16.0% chance reported in July and marks the second consecutive month of job loss concerns rising.
The New York Fed said worries over becoming unemployed were more pronounced among those without a college degree (21.3% perceived chance) and those with a household income below $50,000 a year (24.9% perceived chance).
We face a new wave of mortgage and rental delinquencies, many of which will come in the next few months.
Policy makers are facing the most economically challenging part of the Covid-19 crisis in avoiding the creation of “zombie” companies, according to the Bank for International Settlements.
Ultra-easy monetary and fiscal support is helping companies avoid a liquidity crunch after the pandemic closed down businesses and demand collapsed. But that stance bears risks longer-term, said Claudio Borio, head of the Basel-based institution’s Monetary and Economic Department.
Six months into the pandemic, evidence of longer-term damage to the U.S. labor market is emerging, according to separate analyses of detailed monthly jobs data by labor economists and Reuters.
In the bizarre machinery of an economy that depends on consumer spending funded by stimulus and “extend and pretend.”
— Win Smart, CFA (@WinfieldSmart) September 14, 2020