Fed Survey Reveals Growing Concerns Among U.S. Workers Amid Shifts in Job Market

A recent survey by the Federal Reserve Bank of New York’s Center for Microeconomic Data has highlighted key changes in the U.S. labor market, revealing growing concerns among workers about job security and compensation.

The July 2024 SCE Labor Market Survey reported a significant rise in job-seeking activity, with 28.4% of respondents actively searching for new employment within the past four weeks—the highest level recorded since March 2014. This increase in job hunting was particularly notable among older workers, those without college degrees, and individuals from lower-income households.

Despite the uptick in job-seeking efforts, the survey found that workers’ satisfaction with their current employment situations had decreased across several dimensions. Satisfaction with wages dropped to 56.7%, down from 59.9% a year earlier. More notably, satisfaction with non-wage benefits fell sharply to 56.3% from 64.9%, and contentment with promotion opportunities declined to 44.2% from 53.5%.

The survey also revealed a complex mix of optimism and concern regarding future job prospects. Respondents indicated a higher expectation of receiving job offers in the coming months, with the average likelihood increasing to 22.2% from 18.7% the previous year. However, there was also a rise in anxiety about potential unemployment, with the average expected likelihood of becoming unemployed reaching 4.4%, the highest level since the survey began in 2014.

Interestingly, while job seekers expressed more optimism about receiving job offers, they anticipated lower salaries. The average expected annual salary for potential job offers decreased to $65,272, down from $67,416 in July 2023. This decline was observed across various age and education groups, indicating a broader trend.

In contrast to the declining expected salaries, the average reservation wage—the minimum wage workers would accept for a new job—increased to $81,147. This growing gap between expected offers and minimum acceptable wages could indicate a misalignment between workers’ expectations and the realities of the job market.

The survey also hinted at changing attitudes toward retirement, with a slight increase in the expectation of working beyond age 62 to 48.3% and the probability of working past 67 rising to 34.2%. These figures suggest that more Americans may be considering extended careers, possibly due to ongoing economic uncertainties.

As the U.S. economy continues to navigate the challenges of the post-pandemic landscape, the survey paints a picture of a workforce actively seeking new opportunities while grappling with concerns about job security, compensation, and long-term career prospects. The findings are likely to have significant implications for employers and policymakers as they strive to meet the evolving needs and expectations of the American labor force.

Have you read?
Countries Most in Debt to the International Monetary Fund (IMF).
Most Successful Unicorn Startups.
$100 Billion Club: Richest People With The 12-Figure Fortunes.
Largest electricity consumers in the world, by country (in terawatt-hours).
Countries that Export the Most Goods and Services.