The latest jobs report came in weaker than expected. This comes as a poll shows many Americans are experiencing layoff anxiety.
A new report released by the Labor Department shows in July hiring fell sharply and the unemployment rate climbed to 4.3% — the highest since October of 2021.
Roughly 7.2 million Americans are jobless, and companies added just 114,000 jobs in July — 35% fewer than expected.
ZipRecruiter chief economist Julia Pollak says when the labor market weakens it can lead to a vicious cycle.
"When a three-month moving average of the unemployment rate rises by 0.5 percentage points above the low in the last year, that often is a signal that a recession has begun," said Pollak.
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She adds that a federal interest rate cut could help bring the job market into balance. Recent data shows job openings in the U.S. still exceed the unemployment rate, but the data does little to ease concerns.
A recent poll conducted by MarketWatch found 36% of American workers are experiencing layoff anxiety, 70% of employees are preparing for layoffs by saving money or browsing job listings and 40% of workers say if they were laid off today, they would run out of money in one month based on their current spending.
Matt Brannon, a data journalist with MarketWatch says negative sentiment about the economy, layoff headlines and everyday prices of gas and goods may be contributing factors.
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"A majority of workers actually believe that unemployment today is higher than it was four years ago. Four years ago was right in the wake of the pandemic when unemployment was actually about triple what it was today," said Brannon.
