The Economy May be Worse than It Appears

The economic numbers look great, unemployment is low, and the stock market keeps rising.  However, something doesn't feel right.

I read LinkedIn and Reddit Posts related to employment and the economy.  Qualitatively, posters are sharing that getting hired for a job is very difficult nowadays.   People send out hundreds of applications and get little response.   In addition, people are taking much lower paying jobs to make enough money just to pay living expenses.   Or they are surviving on gig jobs.   Thus, technically, they are not "unemployed."

 See the following article for an example. I've been job searching for over 2 years while raising a child. Here's why I still turned down an offer.

In addition, people are maxing out credit cards leading the highest ever credit card debt and falling behind on car loan payments.  Personal bankruptcy filings have increased significantly in 2025.

Finally, the stock market gains of the past 2 1/2 years (over 20% gains in '23 and '24, and over 12% in '25) have helped keep consumer spending up.

I don't know how much longer the economy and the stock market can hold up.  I expect it may not not much longer, unless money is being or will be pumped into the economy by the government.

 For more on  Reflections and Musings, check back every  Saturday for a new segment.

This is not financial advice. Please consult a professional advisor.

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