Americans Feel Secure in Their Jobs, but Savings Cushions Are Thinning, New Survey Finds

American consumers say their jobs feel safe, but the cushion of savings behind them is wearing thin, according to a new survey that points to households with less room to absorb a financial shock.

Confidence slips for a second month

The September edition of the PYMNTS Intelligence Consumer Expectations Index found that overall consumer confidence fell 0.7 points to 54.1, its second straight monthly decline. The drop was concentrated in views of the broader economy, the timing of big purchases and the ability to switch jobs. A measure of personal financial resilience, which covers savings, debt and day-to-day money management, was essentially flat at 58.3.

Secure in the job, less sure about moving

The report highlights an unusual gap. Perceived safety from layoffs rose 1.3 points to 71.9, and confidence in current job security barely moved. But the job mobility gauge, which asks whether people believe they could find a new role paying what they need, fell 2.2 points and remains below the neutral 50 mark. It declined across every household income tier tracked in the study. In plain terms, workers feel safe where they are but are less certain they could do better elsewhere.

A shrinking savings buffer

The savings figures are the sharper concern. The share of consumers with more than a year of savings fell to 15.1%, a 12-month low. Meanwhile, the proportion who said their reserves would last three months or less if their income stopped rose 2.4 percentage points from August and 4.0 points from April.

Financial planners commonly suggest keeping three to six months of essential expenses in an accessible emergency fund, so a growing group of households sits at or below the bottom of that range.

Rising prices are part of the explanation. Some 85% of respondents said their essential expenses had increased over the past year, and the subindex that measures perceptions of the economy and buying conditions fell 2.2 points.

Generations diverge

The picture differs by age. Baby boomers and seniors grew more confident in their ability to save, up 3.6 points, while Generation Z moved the other way, down 1.3 points. Overall sentiment declined most sharply among Generation Z and Generation X, age groups that are often managing housing, education and family costs at the same time.

A backdrop of higher borrowing costs

The findings land as borrowing costs surge. Mortgage rates are near 7.5%, the 10-year Treasury yield has touched its highest level since 2002, and the Federal Reserve raised interest rates last month for the first time since 2023. For households with variable-rate debt, or plans to buy a home, a thin savings buffer leaves less margin for error.

Friday’s jobs report is expected to show modest hiring, with economists forecasting about 84,000 new positions and unemployment steady at 4.1%. That would fit the survey’s picture of a labour market that is holding up without offering much momentum.

What banks and payment providers are watching

The survey’s authors say that as savings provide less of a buffer, quick access to available money becomes more important to consumers. For banks, card issuers and payment companies, that raises the value of fast transfers, transparent balances and tools that help customers see where their money is going.

It also changes the competition for deposits. With rates higher than they were a year ago in some parts of the market, households that have the means to save may look harder at where they keep their cash.

Practical steps for households

Money experts generally recommend a few steps for people who feel stretched: build an emergency fund gradually, even in small automatic transfers; compare the interest paid by different savings accounts; and review recurring bills and subscriptions for savings. This is general guidance, not personal financial advice, and anyone with specific concerns about debt or investments should speak to a qualified adviser.

The broader message from the survey is not that households are in distress. Most consumers still report confidence in their jobs, and financial resilience held steady in September. But with costs rising and savings shrinking, the margin for the unexpected, whether a car repair, a medical bill or a job loss, is narrower than it was a few months ago.

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