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U.S. workers are growing increasingly dissatisfied with their compensation and job prospects, according to a recent labor market survey released by the New York Federal Reserve.
The July 2024 Survey of Consumer Expectations (SCE) Labor Market Survey revealed satisfaction with wage compensation, nonwage benefits, and promotion opportunities at respondents’ jobs all decreased year-over-year.
This growing dissatisfaction, reflected in only 56.7% of respondents reporting satisfaction with their pay in July (down from 59.9% in July 2023), poses challenges for employers and policymakers as they adapt to new labor market conditions.
“The average expected likelihood of receiving an offer in the next four months increased compared to a year ago, while the average expected likelihood of becoming unemployed in the next four months reached a series high,” according to a release published by the New York Fed.
These declines in job satisfaction were more pronounced among certain demographics. Women, individuals without a college degree, and those earning less than $60,000 a year reported the highest levels of dissatisfaction. For example, satisfaction with benefits plummeted to 56.3% from 64.9%, and those content with future career opportunities fell to 44.2% from 53.5% over the same period.
The survey also delved into workers’ “reservation wage,” which is the minimum compensation they would accept for a job. Reuters reports this figure has climbed significantly over recent years — reaching $81,147 this July, up from $78,645 a year prior — but it remains essentially flat in real terms after accounting for inflation.
The percentage of workers planning to switch jobs increased to 11.6% from 10.6% in July 2023. Interestingly, the percentage of workers expecting to lose their job is at a series high of 4.4%, revealing more are worried about job insecurity amongst increasing economic uncertainty.
The findings arrive at a time of falling inflation pressures and a rising unemployment rate, adding complexity to the current labor market. When adjusted for inflation, the significant increase in reservation wages and declining job satisfaction suggest that workers’ perception of the economy is more complex than it initially seems.
