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Recession fears in 2022 | Snapshot of US worker sentiment
Recession. One word that can strike fear into the hearts of millions. From Washington to Wall Street it’s being discussed as a distinct possibility. So how did we get here?
Inflation and interest rates rise. Workers’ spirits get low. Experts get pessimistic.
But are these fears justified? And what does the average American worker really think?
To get to the bottom of this, ResumeLab decided to poll 1,000+ employees, and explore how they really feel about a potential recession, the 2022 US labor market, and the current economic outlook.
Here are some of the findings:
General views on the US labor market in 2022
- 63% of the survey takers declared a positive attitude to the labor market, 1 in 10 respondents claimed feeling negative, while nearly one-third remained neutral.
- Who feels best about the current labor market? Employees with 3-5 years of work experience (70%), respondents who are 25 years or younger (69%), and those earning $50,000 to $74,999 (69%).
- Surprisingly, there were no respondents aged 25 or younger who declared feeling very negative about the labor market in general. What’s more, only 5% of them chose negative as the answer.
- On the contrary, the highest level of negative sentiment came from employees earning less than $25,000 (20%), those with 11+ years of work experience (19%), and those with no college degree (18%).
Jobs in light of the potential recession
In the survey, ResumeLab asked the question “How secure do you feel in your job now compared to a year ago?”. The answers they got were as follows:
- I feel much less secure now than a year ago—16%.
- I feel less secure now than a year ago—30%.
- No change in my feelings of job security compared to a year ago—15%.
- I feel more secure now than a year ago—32%
- I feel much more secure now than a year ago—7%.
In short, almost one half of employees feel less secure in their jobs now than they did a year ago.
Inflation on the rise, living standards in decline?
Inflation is at a 40-year-high.
There’s no need to be a financial expert to know this can have a negative impact on everyone. Here are some research findings on this burning matter:
- 8 in 10 respondents claimed that rising inflation had already affected their standard of living.
- Because of rising inflation, half of the surveyed prefer to stay in their current job for security, while almost 4 in 10 (38%) are looking for a new job with better pay.
The sum of all recession fears
The study revealed some current economic fears in society. Here’s what worries us the most in 2022:
- 82% of the respondents believe there will be a recession in the US in 2022.
- 9 in 10 survey takers fear the possibility of a recession.
And here are the most popular choices for what respondents consider the worst aspects of a recession:
- Difficulties with finding a new job—45%.
- Risk of losing a current job—41%.
- Being unable to pay my rent or mortgage—29%.
- Being unable to repay other loans—24%.
- Being unable to pay my bills—19%.
- Being unable to support my family—11%.
- Changes in interest rates—6%.
- Other—1%.
You can find the full study from ResumeLab here: https://resumelab.com/career-advice/recession-fears. Continue reading to gain more insights into growing recession fears and strategies to help recession-proof your life.
