Satisfaction with wages, benefits, promotion opportunities drops
Job seekers are increasingly active in the labour market as employee satisfaction reaches new lows, according to the latest survey from the New York Federal Reserve.
The July 2024 SCE Labour Market Survey revealed that the rate of employees transitioning to a new employer has reached its highest level since the survey began, with 7.1% of employed respondents moving to different jobs, up from 5.3% in July 2023.
This increase in job switching is largely driven by women, according to the New York Fed.
The proportion of job seekers has also surged, with 28.4% of respondents looking for a job in the past four weeks, a substantial increase from 19.4% in July 2023.
These movements in the workforce come as employee satisfaction deteriorated over the past year.
Satisfaction with wage compensation at current jobs has fallen to 56.7%, down from 59.9% in July 2023.
Similarly, satisfaction with non-wage benefits has dropped to 56.3% from 64.9%, while satisfaction with promotion opportunities has declined to 44.2%, down from 53.5% a year ago.
"These declines were largest for women, respondents without a college degree, and those with annual household incomes less than $60,000," the New York Federal Reserve said in a media release.
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Growing job market uncertainty
Meanwhile, the survey also revealed an increase in job market uncertainty. The average expected likelihood of becoming unemployed in the next four months rose to 4.4%, up from 3.9% in July 2023, marking the highest level since the survey began in 2014.
Additionally, the expected likelihood of moving to a new employer has increased to 11.6%, up from 10.6% last year.
The average expected likelihood of receiving at least one job offer in the next four months also went up 22.2% from 18.7% in July 2023. However, the average expected annual salary of job offers in the next four months has decreased to $65,272, down from $67,416 a year ago.
According to the survey, the average minimum salary that respondents are willing to accept for a new job has increased to $81,147 from $78,645 in July 2023 but remained slightly below the series high of $81,822 recorded in March 2024.
The New York Fed's survey also found a shift in retirement expectations, with an increase in the expected likelihood of working beyond traditional retirement ages.
The likelihood of working beyond age 62 has risen to 48.3% from 47.7% in July 2023, while the likelihood of working beyond age 67 has climbed to 34.2% from 32% last year.