UM Students Enter Job Hunt as Confidence in the Economy Worsens

Vaishali Prayag, Editor in chief

A job seeker waits to talk to a recruiter at a career fair // AP News

If you're planning to apply for internships or graduate this year, the economic mood just became more uncertain. Consumer confidence in the U.S. has fallen to one of its lowest levels on record, according to the University of Michigan’s latest Consumer Sentiment Survey, amid a prolonged federal government shutdown and rising concerns about hiring.

Joanne Hsu, director of the Surveys of Consumers, said the decline in confidence has been broad-based.

“With the federal government shutdown dragging on for over a month, consumers are now expressing worries about potential negative consequences for the economy,” Hsu said.

The survey matters on campus because shifts in consumer sentiment often precede changes in the labor market, particularly for entry-level roles. This month, 71% of households reported expecting unemployment to rise over the next year, up sharply from 52% in October. James Knightley, chief international economist at ING, called the shift “notable and concerning,” adding:

“A huge increase which has historically been the prelude to an ugly outcome for jobs.”

For students entering the workforce, the implications are straightforward: hiring processes may slow, internship postings may thin out, and searches may take longer than expected.

At the same time, short-term inflation expectations edged up to 4.7%, signaling that the cost of groceries, transportation, and rent is unlikely to fall soon. Many students have already felt these pressures in dining hall pricing, off-campus leases, and day-to-day necessities.

However, the downturn is not evenly felt. Households with significant stock market investments remain more insulated, buoyed by strong gains in tech-driven markets this year.

“The top 20% of households by income drive 40% of consumer spending,” said Michael Pearce of Oxford Economics. “The wealth effect from the buoyant stock market has strengthened this year.”

That divide often maps onto students’ lived experiences: those with family financial support may feel less immediate pressure, while students working to meet tuition or rent face tighter constraints.

Some economists, however, suggest caution in interpreting the data too definitively. Oliver Allen, senior U.S. economist at Pantheon Macroeconomics, noted that the shift to online survey sampling and the temporary drag from the shutdown may have amplified the decline.

“These numbers should be taken with a grain of salt,” Allen said.

The survey was conducted prior to Election Day, meaning upcoming political outcomes could also shift economic expectations.

For now, the broader takeaway is clear: Americans are uneasy, and that unease may influence hiring patterns in the months ahead. For UM students, especially seniors, the moment may call for earlier applications, wider job searches, and more deliberate budgeting while the economic outlook remains unsettled.