USA 
United Kingdom
A recent survey by the Federal Reserve Bank of New York's Center for Microeconomic Data has highlighted the shifting landscape of the current US labor market, with workers expressing growing concerns about job security and compensation.
The July 2024 SCE Labor Market Survey highlights a significant increase in job-seeking activity, with 28.4% of respondents actively searching for new employment in the past four weeks, the highest level since March 2014. The surge in job hunting is particularly pronounced among older workers, those without college degrees, and individuals from lower-income households.
Despite increased job-seeking efforts, workers' satisfaction with their current employment situations has declined on multiple fronts. Wage satisfaction fell to 56.7%, down from 59.9% a year earlier. Even more dramatically, satisfaction with non-wage benefits dropped to 56.3% from 64.9%, while contentment with promotion opportunities plummeted to 44.2% from 53.5%.
Workers optimistic about job offers but pessimistic about salaries
The survey also reveals a paradoxical mix of optimism and concern regarding future job prospects. On the one hand, respondents reported a higher expectation of receiving job offers in the coming months, with the average likelihood rising to 22.2% from 18.7% the previous year. However, workers also expressed heightened anxiety about potential unemployment, with the average expected likelihood of becoming unemployed reaching 4.4%, the highest level since the survey's inception in 2014.
Interestingly, while job seekers are more optimistic about receiving offers, they anticipate lower salaries. The average expected annual salary for potential job offers declined to $65,272, from $67,416 in July 2023. The decrease was observed across various age and education groups, suggesting a widespread trend.
In contrast to declining expected offer wages, the average reservation wage - the minimum wage workers would accept for a new job - increased to $81,147. The widening gap between expected offers and minimum acceptable wages could cause a misalignment between workers' expectations and market realities.
The survey also hints at changing attitudes towards retirement. Expectation of working beyond age 62 increased slightly to 48.3%, while the probability of working past 67 rose to 34.2%. The figures suggest that more Americans are considering extended careers, possibly due to economic uncertainties.
As the US economy continues to navigate post-pandemic challenges, the survey paints a picture of a workforce that is actively seeking new opportunities but also 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 work to address the evolving needs and expectations of the American labor force.
