Many consumers are in a position where they are not as confident as financially at the present time as they feel they were in years past, but we recently saw that the number of jobs that were added in October, in terms of non-farm payrolls, brought about new employment opportunities and currently we are facing unemployment rate of 9%, which is down from 9.1%. Obviously, there are still those who feel a great deal must be done before employment is less of a problem, in terms of jobs being lost in various industries, there is hope that as we have seen some continued increases in the jobs being added, despite a slow recovery there are still movements in a positive direction.
Some sectors have seen problems when it comes to job creation, and of course this has led to some consumers finding themselves in a position where they are not as confident as they have been, even as early as last year, as we have also seen indications that some consumers may be hesitant to buy goods and services as a result of a lack of confidence. While there are those who feel that their finances may simply not last them in the current economy, particularly in cases where cutbacks have been seen in wages, there are those who feel that their job is not secure as it has been in the past, as again there are still industries that are losing jobs despite the fact that we are seeing some increases in job creation.
However, before the economy is in a position where benefits are being seen, in terms of individuals finding employment, consumers avoiding the loss of their home, default on debts, or other personal financial problems, and difficulties that have arisen in housing to start abating, there will have to be a great deal of change in terms of the unemployment rate, as the drop off from 9.1% to 9%, while it was a decrease, is not substantial enough to indicate that there are any major changes that could be taking place at the present time.
Obviously, consumers who are losing confidence about their finances are in a position where a job that may be the result of this lack of confidence, again where unemployment may be in place or insecurity about the longevity of a consumer’s employment opportunity. Yet, this has led some concerns over the coming holidays and consumer spending, as again there are some who feel that the lack of confidence that we have seen not only in terms of employment but personal finances could lead to a slow holiday season, but again these opinions are mixed and many say we will simply have to wait and see.
Yet, when it comes to confidence that consumers have, we have seen different opinions and situations, as some areas of the nation are recovering more in jobs and housing than others, but factors like holiday purchases may give us a better national indicator of how consumers feel, in terms of their ability to purchase, and as we see hiring already in place for the holiday season, this could at least lead to some employment opportunities for a short time for those who are struggling.