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Disengaged Employees In Low-Quality Jobs Cost U.S. Employers $1.9 Trillion Annually

Only 40% of U.S. jobs meet quality standards, costing companies nearly $2 trillion annually in lost productivity and engagement, according to a new World Economic Forum report.

Allwork.Space News TeambyAllwork.Space News Team
January 6, 2026
in News
Reading Time: 2 mins read
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Disengaged Employees In Low-Quality Jobs Cost U.S. Employers $1.9 Trillion Annually

U.S. quit rates hit a decade low as job hopping slows, but new data shows many workers stay out of caution rather than satisfaction, creating hidden costs for businesses.

U.S. quit rates have dropped to their lowest level in nearly a decade, signaling a sharp slowdown in job hopping after years of intense labor competition. While employers are seeing more stability, new data suggests many workers are remaining in place out of caution rather than satisfaction, according to the World Economic Forum. 

This has changed the balance of power in the labor market, but it may be masking a deeper problem: widespread disengagement among employees who feel unable or unwilling to move.

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Only Four in Ten Jobs Meet Basic Quality Standards

According to the American Job Quality Study (AJQS), just 40% of U.S. workers hold jobs that meet core quality benchmarks. The national study, conducted by Gallup and research partners, defines job quality around five factors: fair pay, safety, stability, worker input, and opportunities for growth.

Workers in jobs that meet these standards report significantly stronger outcomes. They are more than twice as likely to report high job satisfaction, a stronger sense of purpose, and higher overall well-being compared with those in lower-quality roles.

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Disengagement Carries a Measurable Cost

Lower satisfaction does not only affect workers. Research consistently links disengagement to reduced productivity, weaker collaboration, and lower business performance. 

Gallup estimates that disengaged employees cost U.S. employers about 34% of their salary in lost output, totaling roughly $1.9 trillion annually across the economy.

As a result, organizations may be retaining staff but losing momentum, creativity, and performance — outcomes that can be more damaging than turnover.

Job Quality Improvements Don’t Always Mean Higher Pay

The AJQS findings suggest that improving job quality does not necessarily require significant wage increases. Factors such as predictable schedules, safe and respectful workplaces, employee input, and clear paths for advancement were strongly associated with better outcomes for both workers and employers.

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Employee input, often referred to as “worker voice,” showed one of the strongest correlations. Workers who reported having appropriate influence over their working conditions were nearly twice as likely to report high job satisfaction as those who did not.

Training and Mobility Linked to Stronger Retention

The study also found a clear link between learning opportunities and satisfaction. Nearly half of workers who participated in employer-sponsored training reported high job satisfaction, compared with just over a quarter of those who did not.

Organizations that invest in skills development reported higher productivity, stronger retention, and improved innovation outcomes, according to Gallup estimates.

Stability Without Engagement May Be a Risk

While fewer workers are leaving their jobs, the data suggests stability alone is not a guarantee of performance. Employers that assess and improve job quality may be better positioned to maintain engagement, productivity, and long-term competitiveness as labor market conditions continue to shift.

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Source: World Economic Forum
Tags: North AmericaWork-life BalanceWorkforce
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Allwork.Space News Team

Allwork.Space News Team

The Allwork.Space News Team is a collective of experienced journalists, editors, and industry analysts dedicated to covering the ever-evolving world of work. We’re committed to delivering trusted, independent reporting on the topics that matter most to professionals navigating today’s changing workplace — including remote work, flexible offices, coworking, workplace wellness, sustainability, commercial real estate, technology, and more.

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