A recent Federal Reserve survey released on Wednesday reveals that nearly three-quarters of U.S. adults continued to rate their personal finances as being in reasonable shape last year. The annual poll indicated that 73% of adults felt they were “doing okay financially” or “living comfortably,” a figure unchanged from the previous year. However, this stability in personal assessments coexisted with persistent concerns about inflation and a noticeable uptick in worries regarding job security. The national economic outlook remained more subdued, with only 26% rating the national economy as “good” or “excellent,” a dip from 29% in 2024 and significantly down from 50% in 2019, prior to the COVID-19 pandemic.
Inflation emerged as the top overall concern, expressed by more than nine out of 10 respondents, though the proportion citing price increases as a “major concern” eased somewhat. Behavioural changes in response to higher prices also slipped slightly to 77% from 79%. Concurrently, views of the job market became more apprehensive, with 42% of respondents expressing concern about finding or holding a job, an increase from 37% in 2024. This finding aligns with broader data indicating a dramatic slowdown in hiring during 2025 and a greater likelihood of extended unemployment for those who lost work.
Despite the overall stable personal finance rating, certain demographic groups experienced meaningful declines in their financial well-being assessments. These included low-income households, younger adults, and Black adults. On a measure of household resilience, the survey found that 63% of respondents had cash available for an unexpected $400 emergency expense, a figure unchanged from the year prior. For the first time, the survey also queried about generative artificial intelligence usage, revealing that approximately one in four workers had used AI tools in the prior month, largely expecting these tools to improve their careers rather than replace their jobs.
