Behind every American who does not have a job there are apparently many who are concerned about whether they will keep their own. Depending on whether joblessness is 9.6% or the 17% which includes the underemployed and those who have stopped looking, the army of the panicked is huge.
A new poll from Gallup shows that “roughly one in four Americans employed full or part time is currently worried about being laid off in the near future.” The number is down a small percentage from last year, but still double what it was in 2008.
The numbers are good for employers but bad for consumption. There is a great deal of evidence that businesses that are adding to their work forces are doing so with part-time people or consultants. This both saves money for benefits and makes it less expensive to terminate workers.
Those workers currently employed who are worried about keeping jobs are not likely to be consumers. They are also not likely to buy homes or expensive articles like cars. If that is true, the housing sector has more of a drag on it than many analysts believe and the auto industry may be in for a bad patch for the balance of the year. The holiday retail season, the only hope of so many stores. which have had rough years could be as weak as it was in 2008.
The other data from the poll is almost as disturbing. Many people with jobs believe that their salaries will be cut–39% of those polled. Many others believe that their hours will be reduced.
A great deal is written about those who are out of work now, especially those who have been unemployed for 26 weeks of more. In their shadows are millions of people who view their futures as gloomy.
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