The Federal Reserve Board has released its annual "Economic Well-Being of U.S. Households in 2025" report, offering a comprehensive look at the financial circumstances of American adults and their families. The findings indicate that overall financial well-being remained consistent with recent years, although the landscape of household concerns has seen some shifts. The report is based on the Board's Survey of Household Economics and Decisionmaking (SHED), which was conducted in October 2025.
According to the survey results, the labor market demonstrated continued strength, though there were signs of some softening compared to the previous year. Price increases were identified as the most prevalent financial worry for U.S. adults. While the overall concern about prices persisted, the proportion of adults who classified price increases as a major concern saw a slight decrease.
Federal Reserve Board Governor Michael S. Barr emphasized the importance of this data, stating, "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." He added, "The SHED provides valuable data on how households are dealing with evolving financial opportunities and challenges."
The report reveals that 73 percent of adults reported their financial situation as either "doing okay" or "living comfortably." This figure aligns with the results from 2024, but represents a slight decrease from the high of 78 percent recorded in 2021. Furthermore, the ability of households to cover a $400 emergency expense using readily available funds remained unchanged from the prior year, with 63 percent of adults indicating they could do so.
Price increases continued to be the most frequently cited financial concern among U.S. adults, with 91 percent of respondents identifying it as either a major or minor concern. However, the intensity of this concern appears to be moderating. The share of adults who specifically labeled "price increases" as a "major concern" declined to 53 percent, down from 56 percent in the 2024 survey. This suggests that while inflation remains a worry, its impact as a primary stressor may be lessening for some households.
Regarding employment, the survey painted a picture of a solid labor market, albeit one that has experienced some cooling since the previous survey period. The proportion of adults who expressed concern about "finding or keeping a job" increased to 42 percent, up from 37 percent in 2024. This indicates a growing awareness of potential labor market shifts among the workforce.
Voluntary job departures saw a slight reduction, with 8 percent of adults reporting that they had voluntarily left a job. Conversely, there was a marginal increase in layoffs, as 7 percent of all adults reported being laid off, a slight uptick from the 6 percent recorded in the 2024 survey. These figures collectively suggest a labor market that is still robust but perhaps becoming more balanced.
An emerging theme in the report is the adoption of generative artificial intelligence (AI) in the workplace. The survey found that one in four workers reported using generative AI in the preceding month. Among these users, a significant majority, 81 percent, agreed that the technology helps them save time. Moreover, AI users were more inclined to believe that AI would benefit their careers rather than pose a threat of job displacement.
However, the perspective on AI's benefits was less pronounced among workers who had not used generative AI in the prior month. These individuals reported fewer perceived advantages and potentially greater apprehension about the technology's impact on their employment. This highlights a growing divide in understanding and experience with AI tools across the workforce.
The report also delves into other aspects of household finances, including income, expenses, and housing situations, providing a detailed snapshot of the economic realities faced by Americans. The findings from the SHED are crucial for the Federal Reserve as it formulates monetary policy and seeks to foster a stable economic environment. The continuous monitoring of household economic well-being allows policymakers to better understand the real-world effects of economic conditions and policy decisions on individuals and families across the nation.
The full report, along with supplementary materials such as a fact sheet, downloadable data, data visualizations, and a summary video, is available on the Federal Reserve Board's website. This initiative underscores the Federal Reserve's commitment to transparency and its dedication to understanding the diverse economic experiences of U.S. households.
