Federal Reserve Board issues 2025 household well being report showing stable finances and a softer labor market

The Federal Reserve Board has published its Economic Well-Being of U.S. Households in 2025 report, drawing on the annual Survey of Household Economics and Decisionmaking fielded in October 2025. The report finds that U.S. household financial well-being was broadly unchanged from recent years, while the labor market remained solid but softened from the prior survey. Price increases stayed the most common financial concern, although the share of adults describing them as a major concern declined slightly. The report shows that 73 percent of adults said they were either doing okay or living comfortably financially, unchanged from 2024 but below the 78 percent peak in 2021. The share able to cover a USD 400 emergency expense using cash or its equivalent was also unchanged at 63 percent. Prices were cited as a minor or major concern by 91 percent of adults, while the share calling price increases a major concern fell to 53 percent from 56 percent in 2024. Signs of labor market softening included 42 percent of adults reporting concern about finding or keeping a job, up from 37 percent in 2024, a slight decline in voluntary job exits to 8 percent, and an increase in layoffs to 7 percent from 6 percent. The report also covers generative artificial intelligence use at work, finding that one in four workers had used it in the prior month and that 81 percent of users said it saved them time.