American workers have growing fears about AI technology, the outcome of the election, and its impact on unemployment, according to a new survey by MarketWatch Guides. Some of this anxiety has resulted in a focus on preparedness, as 40% of those we surveyed said they saving more money than usual to prepare for the results of November and beyond.
| Please answer the following yes or no questions regarding layoffs. | Yes | No |
| Do you believe the outcome of the upcoming presidential election will significantly impact the unemployment rate? | 67% | 33% |
| To the best of your knowledge, do you believe the U.S. unemployment rate is higher than it was four years ago? | 55% | 46% |
| Do you believe AI technology will cause an increase in unemployment? | 68% | 32% |
| Do you personally have anxiety about the possibility of being laid off? | 36% | 64% |
n=1,000
72% of Gen Z wrongly believes unemployment is worse than it was during COVID.
55% of Americans, and a majority of our Generation Z survey respondents, wrongly believe unemployment is worse now than it was 4 years ago during COVID, which saw the unemployment rate peak at 14.8%, which is nearly 3.5 times higher than today’s 4.1% according to the BLS.
Top ways Americans are financially preparing
Encouragingly, 70% of workers are already preparing for potential layoffs, with 40% saving more than usual, according to our study. Here were the top 4 ways survey respondents said they were preparing:
- Saving more of my income than usual: 40%
- Regularly browsing relevant job listings: 32%
- Reworking my resume: 29%
- Actively applying to new jobs: 24%
Being proactive about finances can help people feel more in control during financial fear and anxiety around what the future may bring. That being said, if you’re trying to maximize your emergency fund, saving money in a high-yield savings accounts offers a boost, earning better returns than traditional savings accounts (some rates are as high as 6%). Around 1 in 3 of those we surveyed (31%) said they would take out a personal loan if laid off, to afford living expenses while on the job search. If going this route, choosing a personal loan with no origination fees, competitive interest rates and same-day funding can be helpful if you find yourself laid off.
Will the presidential election impact unemployment numbers?
“The economy remains the top issue for voters going into the election. Supporters of both parties are fearful of the consequences should the opposing party enact its economic agenda. But, it’s important to know that the White House has limited influence on the overall state of the economy. In many cases, spikes in unemployment are out of a president’s control, depending much more on market forces like supply and demand, rather than changes to a federal budget.
Another recent MarketWatch Guides survey of 2,000 Americans found that consumers are split, but slightly more likely to trust the Democratic Party over the Republican Party when it comes to dealing with unemployment — by a margin of 37% to 33%. That may be a reflection of the 2008 and 2020 swells in unemployment taking place under Republican administrations. But other countries with opposing financial philosophies saw similar increases in unemployment at those times.
That’s not to say a president can’t influence the economy, since changes in government spending, interest rates, and tax rates can move the needle. But those levers are more often used in an existing economic downturn, which we aren’t dealing with at the moment.”
~ Matt Brannon, personal finance expert at MarketWatch Guides
The MarketWatch Guides team surveyed 1,000 American workers who are not self-employed. The survey was run using Pollfish, a third-party market research and survey platform, to gain insights regarding how workers feel about the possibility of being laid off. We weighted responses to align with population demographics across age and gender to be representative of all U.S. adults (aged 18+). The margin of error is +/- 3% with 95% confidence.
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Tags: Payroll
