The share of consumers expecting more jobs to become available in the next six months dropped to 14.3 percent in January, the lowest since December 2011, from 17.9 percent the previous month.
Fewer consumers anticipate a pickup in their incomes as well. The share expecting an increase in the next six months fell to 13.6 percent, the lowest since October 2011.
Labor Market
The number of respondents who said jobs are currently plentiful declined to 8.6 percent in January from 10.8 percent. Those who said jobs are hard to get rose to 37.7 percent from 36.1 percent.
Increased pessimism about the labor market may be seeping into purchase plans. The share of Americans planning to buy a car in the next six months fell to 10.1 percent, the lowest since April 2012.
Today’s figures mirror other measures of consumer confidence. The Bloomberg Consumer Comfort Index dropped in the week ended Jan. 20 to the lowest level since early October as Americans’ concerns about the economy mounted.
The Thomson Reuters/University of Michigan preliminary index of consumer sentiment dropped in January to its lowest point since December 2011.
These reports also showed that a decrease in take-home pay from the increase in payroll taxes is weighing on attitudes. Americans earning $50,000 a year will take home about $80 less a month after the tax used to pay for Social Security benefits went up to 6.2 percent from 4.2 percent.
Budget Debate
While lawmakers avoided broad-based increases in income taxes, Congress is now debating how best to reduce the nation’s budget deficit. Automatic spending cuts are slated to go into effect March 1.