Job loss is big concern for Americans

12.15.08
By Nicholas Storie

You would think the survey's findings would be cause for celebration: consumer confidence actually made an unexpected rise this month, according to a poll by the University of Michigan and Reuters.

Not so fast, the report warned. Even though the index of consumer confidence made a surprise jump from 55.3 in November of 59.1 in December, Americans are still worried - particularly about whether or not they will have a job in the coming months.

The increase was most likely due to falling gas prices, holiday retailer discounts and the softening of inflation worries, the report said.

"Nonetheless, consumers have become even more pessimistic about prospects for the overall economy, especially the outlook for employment," it added.

It is no surprise that people may be feeling apprehensive about their job outlook, with recent figures indicating that unemployment numbers have reached levels not seen since the mid-1980s.

With such uncertainty in the air, you may want to think about boosting the amount of money you are setting aside for a rainy day.

It can also be a good idea to reassess your credit score and make sure it is in tip-top shape, because you would be likely to rely on credit more in the case of a job loss.

If you are thinking about applying for a new credit card, it is better to do so while you are still employed.

Consumer advocate John Ulzheimer recently told CNBC that even though credit scoring models don't take your employment status into account, credit card providers will probably still ask you about your job and earnings.

Planning ahead now may help avoid a situation in which you need credit - and find yourself unable to obtain it.

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Worries about job loss may dampen any increase in consumer confidence