Survey Reveals Job Seekers’ Growing Financial Anxiety Amid Rising Unemployment

A recent survey conducted by BadCredit.org sheds light on the growing struggles of unemployed job seekers in the U.S., highlighting the emotional toll, financial pressures, and evolving job search strategies in a competitive market.

The survey, which gathered insights from 1,006 American job seekers ranging in age from 18 to 76, with an average age of 34, underscores the challenges many face as they navigate an increasingly difficult hiring process.

On average, job hunters have applied to 51 positions since becoming unemployed, spending about two hours per day on applications. For the 40% of respondents who have been unemployed for over a year, that time investment adds up to more than 730 hours of job searching. Many have turned to side gigs to supplement their income, with 44% freelancing, 17% working part-time, and 10% contracting or taking jobs outside their primary field.

Despite the volume of applications, personalization remains a priority for experienced job seekers. The survey found that 73% of senior-level applicants tailor their cover letters, compared to 64% of mid-level and 47% of entry-level candidates. Similarly, 75% of senior applicants customize their résumés, compared to 63% of mid-level and 55% of entry-level candidates.

Job hunting is proving to be a mentally and financially exhausting process. The survey found that 75% of respondents are stressed by repeated rejections; 80% report emotional burnout; 70% worry about depleting their savings before finding a job; and 41% fear homelessness due to prolonged unemployment.

Age discrimination also appears to be a concern, with 42% of respondents believing theyve lost job opportunities due to their age. Meanwhile, 80% have not secured an interview through personal networking, highlighting the challenge of breaking into the job market without strong connections.

One significant frustration for job seekers is the prevalence of “ghost jobs” — listings for positions that employers never intend to fill. These postings inflate hiring pipelines, boost company branding, or comply with corporate policies requiring job listings even when a candidate has already been selected. The survey found that 68% of job seekers felt negatively impacted by ghost job postings, citing wasted time, overwhelming job feeds, and false salary expectations.

With inflation and rising living costs, 67% of job seekers say financial pressures have forced them to compromise on their job search expectations. The top adjustments include: 52% lowering salary expectations; 47% settling for a different job title; 43% prioritizing full-time work over industry preference; and 42% becoming flexible on remote, hybrid, or in-person roles.

Remote work remains highly valued, with 82% of job seekers willing to take a pay cut for fully remote positions. Millennials (87%) and Gen Z (73%) are particularly inclined toward remote roles. Company culture also plays a key role, with 70% willing to accept lower pay for a healthier workplace environment.

Technology is playing a growing role in job searches, with job seekers investing in tools to gain an edge. The survey found that 9% pay for premium job search services, with an average spend of $80 per month on platforms like LinkedIn Premium, résumé-building tools, and AI-powered application assistance.

Artificial intelligence is increasingly being used for job applications: 37% use AI to adjust résumés; 34% use it for interview preparation; and 32% rely on AI for cover letter customization. Additionally, 20% of job seekers track their applications using spreadsheets, highlighting the structured approach many are taking to navigate the job market.

Erica Sandberg, Consumer Finance Expert with BadCredit.org, advises job seekers to manage their finances carefully during unemployment and remain realistic about the job search timeline.

“The results of the survey are truly alarming. Clearly, the majority of job seekers are struggling both emotionally and financially,” Sandberg says. “If youre in the job market, this is a perfect time to review your budget and slash expenses dramatically. Remember, this is a temporary measure. The less you spend, the more you can elongate your savings, and wont end up leaning on credit cards, which you will regret when you do get a job and have to pay it all back.”

Sandberg said one spot of “good news” is that people are making up for lost wages with temporary work and gig assignments.

“Ultimately, looking for employment is a numbers game, but do be on the lookout for those nonexistent jobs so you dont waste your time,” Sandberg says. “The fact is, you may be applying for positions for a while. Go into it expecting it can take a long time to get the job you want. Accepting that will help you avoid frustration.”