The job market has been more challenging in recent months, but new findings from The Conference Board indicate that job prospects are just as bad now as they were during the pandemic. The board's Consumer Confidence Survey found that 20% of consumers said jobs were "hard to get," which is up from 18.9%.
The board acknowledged in its Employment Trends Index that the 20% figure is the highest since early 2021, right when lockdowns limited new job opportunities.
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Job Openings Are Down, And Small Firms Still Can't Fill Jobs
The Conference Board Employment Trend Index offered several details that explain why the job market is bad. The Bureau of Labor Statistics' Job Openings and Labor Turnover Survey shows that job openings continue to fall. They dropped by 176,000 in July after falling by 355,000 in June. President Donald Trump's tough immigration stance has reduced the number of workers, and The Conference Board Economist Mitchell Barnes cited tariffs as another factor that can push job numbers down.
"Layoffs and unemployment remain low as companies navigate through continued uncertainty," Barnes said. "But tariff pressures are expected to intensify, raising inflation and reducing consumption, which could restrain activity and dampen future hiring."
Fewer job opportunities also come at a time when 32% of small firms report that they are not able to fill job opportunities right now. That's a slight decrease from 33% in July and 36% in June, but it demonstrates that many small businesses can't find workers.
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Unemployment Claims Increased
The Conference Board found that initial claims for unemployment insurance increased slightly in August and were close to their May levels. The research also includes people who begrudgingly took part-time jobs because they were laid off from full-time employers. The share of these workers makes up close to 17% of the workforce.
"While the labor market remained resilient over much of this year, six of eight ETI components were negative in both July and August for the first time since November 2024," Barnes said. "This potentially marks a turning point, where business activity is slowing more materially to reflect softer business confidence levels."
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How To Protect Your Finances
A challenging job market makes it even more important to protect your finances. Minimizing discretionary spending and putting more money into assets is a standard practice that can help you build a nest egg sooner. Building up your portfolio after establishing an emergency fund will give you a stronger financial buffer in case you get laid off.
It may also be worth picking up a side hustle or starting a small business to diversify your income streams. It's easier to do these things on top of a career if you are single, and most people in that position should take advantage of the extra time that they have.
However, the best way to protect your finances is to be careful about large purchases. Houses and cars eat up the majority of people's budgets. Getting a used car instead of a new one and not buying a house that's too big can keep your costs down.
It's important to remain financially disciplined in any economic cycle, but it's critical during slow job markets.
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