Household well-being stable, AI use rising, price concerns ease
The Federal Reserve Board's 2025 report on U.S. household well-being indicates overall financial stability. It highlights easing price concerns, rising AI use in the workplace, and persistent challenges for certain demographics.
Stability amid shifting concerns
The Federal Reserve's 2025 Survey of Household Economics and Decisionmaking (SHED) reveals continued stability in overall financial well-being, with 73 percent of adults reporting they are 'doing okay financially' or 'living comfortably.'
However, low-income, young, and Black adults experienced meaningful declines.
Price increases remained the most common financial concern for over 9 in 10 adults, though the share citing it as a *major* concern eased by 3 percentage points.
Views on the national economy worsened, with only about one-fourth rating it as 'good' or 'excellent,' down 3 percentage points from 2024.
The survey also introduced questions on generative artificial intelligence (AI) in the workplace.
One-in-four workers had used generative AI in the prior month, with 81 percent agreeing it saves them time.
These users were more likely to view AI as beneficial for their careers than to worry about job replacement.
Furthermore, 63 percent of adults could cover a hypothetical $400 emergency expense using cash or its equivalent, a figure unchanged for three years.
Persistent challenges for vulnerable groups
The report details a softening labor market, with concerns about finding or keeping a job rising to 42 percent of adults from 37 percent in 2024.
Layoffs increased slightly, and voluntary quits decreased.
Young adults faced particular difficulties, with 49 percent under age 30 living with a parent, up 6 percentage points since 2022.
Additionally, 47 percent of adults aged 18 to 29 received outside help to pay expenses.
Economic hardships persisted, with 16 percent of adults not paying all bills in the prior month, and 26 percent skipping medical expenses due to cost.
Financial fraud remained a concern, with 20 percent of adults experiencing scams.
Total non-credit-card fraud was an estimated $100 billion in 2025, with $56 billion borne directly by consumers.
Beneath the surface: A fragile stability
The Federal Reserve's report paints a picture of surface-level stability that masks significant underlying fragilities for key demographic groups.
While easing inflation concerns are positive, persistent challenges in housing, employment, and fraud for young and low-income adults highlight a widening gap in financial well-being.
This suggests broad economic indicators may not fully capture the uneven recovery, necessitating targeted policy attention.