Expectations of a slight rise in consumer confidence were frustrated as the latest numbers were reported earlier today. It is clear that consumers do not believe that an economic recovery is underway. One of the reasons is most likely the fact that the labor market remains weak. MarketWatch reports on the part employment perceptions are playing in consumer confidence:

The percentage of consumers who said jobs were “hard to get” increased in October to 49.6% from 47.0%, while the percentage who said jobs were “plentiful” fell to 3.4% from 3.6%. The net jobs plentiful number worsened to -46.2 in October from -43.4 in the prior month.

Employment and consumer confidence is important because the economy is dependent on consumers for 2/3 of its activity. With consumer confidence down, there is a chance that this holiday shopping season may not be as helpful as hoped. Additionally, there are concerns that worries about employment will stymie a recovery in the housing market, which is also considered an important part of the economy.