The Federal Reserve Board issued a report this week that examines the financial circumstances of U.S. adults and their families.
Overall, the Economic Well-Being of U.S. Households in 2025 report shows that financial well-being was consistent with recent years. Survey results indicate that the labor market remained solid, despite some softening since the previous year’s survey. Price increases remained the most common financial concern, though the share of U.S. adults saying it was a major concern declined slightly.
The report draws from the Fed Board’s annual Survey of Household Economics and Decision-making (SHED). The SHED report analyzes a wide variety of topics, including financial well-being, employment, income and expenses, and housing.
“As we work to support a strong and vibrant economy, it’s critical for the Federal Reserve to understand the economic experiences of families and communities,” Federal Reserve Board Governor Michael Barr said. “The SHED provides valuable data on how households are dealing with evolving financial opportunities and challenges.”
The new Fed report revealed that 73 percent of adults reported either doing okay or living comfortably financially, consistent with 2024. However, it was below the overall high of 78 percent in 2021. The share who would cover a $400 emergency expense using cash or its equivalent also remained unchanged from 2024 at 63 percent.
Prices continued to be the most common financial concern among U.S. adults, with 91 percent citing it as either a major or minor concern, unchanged from the previous year. However, the share who cited “price increases” as a “major concern” declined to 53 percent, down from 56 percent in 2024.
Further, 42 percent of adults said “finding or keeping a job” was either a minor or major concern, up from 37 percent in 2024. Also, the percentage of adults who voluntarily left a job declined slightly to 8 percent. Additionally, there was a small increase in layoffs, as 7 percent of all adults reported being laid off, up from 6 percent in 2024.
The report also discussed the adoption of generative artificial intelligence (AI) at work. Roughly 25 percent of workers used generative AI at work in the prior month, and 81 percent of users agreed that it saves them time. Further, AI users were also more likely to agree that the technology would improve their careers than to say that they were worried that AI would replace their jobs. However, workers who did not use AI in the prior month saw fewer potential benefits.