More than 55% of US workers are worried about potentially losing their jobs over the next six months|Marco Verch Professional Photographer|CC BY 2.0

At a time when US officials are pointing at a steadily robust labor market that’s keeping the economy from sinking into recession, economists say the best days are over.

As borrowing gets more expensive, with the Federal Reserve continuing to hike interest rates, it could very well lead to a broader economic decline. “If not this year, then at some point in 2023,” says The Motley Fool’s Maurie Backman.

Shrinking income
A “significant number” of Americans saw their income shrink last month even as prices remained high, and a majority of workers believe they will be rendered jobless within six months, according to new data.

Figures released by global research firm Morning Consult reveal that 11.7% of Americans reported a decrease in their incomes in July—up from 11% in June. 

The “high-frequency data” is based on 20,000 surveys per week conducted throughout July and is correlated with initial unemployment claims which have also jumped in recent weeks, Morning Consult said ahead of the Bureau of Labor Statistics’ jobs report due Friday.

Lost pay has been concentrated in certain sectors, including leisure, hospitality, and construction, it said.

Fear of joblessness
Meanwhile, 58% of US workers are worried about potentially losing their jobs over the next six months while only 22% believe it’s unlikely, according to a recent survey by ResumeLab.

The labor market’s “best days may now be in the rearview mirror,” says Morning Consult’s chief economist John Leer. “Businesses are slowing hiring and expansion plans, releasing steam from a red-hot labor market.”