Americans don't have enough savings for longer and longer job searches

"Job searches are taking longer, and some Americans' savings aren't keeping up. At one point, during Michele Wilke's post-layoff job search, she had less than $2,000 in her bank account - and was worried about being evicted from her studio apartment in Chicago. To stay afloat, Wilke launched a GoFundMe that raised nearly $3,000 and borrowed money from friends, eventually accumulating more than $20,000 in personal debt. Last September, after eight months of searching, she landed a catering sales manager role."

""My goal is to make some money and pay off my debt," said Wilke, who's in her 60s. "I want a fresh start." Wilke's experience underscores how quickly a prolonged job search can unravel someone's finances - especially for workers without much savings to fall back on. Nearly half of Americans don't have three months' worth of expenses set aside in an emergency or "rainy day" fund, according to the latest Federal Reserve survey data from 2024."

"Those facing joblessness are in an ever-more precarious position; the typical unemployment stint is getting longer as US companies are hiring at one of the lowest rates since 2013. At the same time - though inflation has eased -costs for housing, food, and other essentials are squeezing household budgets. Over the past year, I've spoken with dozens of laid-off workers. Many were surprised not just by the layoffs themselves, but by how difficult the job market they entered proved to be."

Job searches are taking longer and typical unemployment durations are increasing as US hiring sits near lows not seen since 2013. Many workers lack sufficient emergency savings; nearly half of Americans do not have three months' worth of expenses saved, per the 2024 Federal Reserve survey. Laid-off workers face mounting financial strain from housing and food costs even after inflation eased. Examples include a 60-something worker who launched a GoFundMe, borrowed from friends, accrued over $20,000 in personal debt, and spent eight months searching before securing a new role. Some workers are proactively saving for potential layoffs.

Read at Business Insider