US workers are gloomier about compensation and job prospects, the New York Fed says

American workers I am increasingly sour with them engagement compensation, according to a survey released Monday by the New York Federal Reserve.

In its Survey of Consumer Expectations, Labor Market Survey for July, the regional Fed the bank said that since last month, “satisfaction with salary compensation as well as non-salary benefits and promotion opportunities at respondents’ current jobs has deteriorated.”

In July, 56.7% of respondents said they were satisfied with their pay, compared to 59.9% who had a similar opinion in July 2023. Satisfaction with benefits fell to 56.3% from 64.9% in the same time period, while satisfaction with future career improvement fell to 44.2% of those surveyed, from 53.5% in July 2023.

The survey noted that the drop in satisfaction was concentrated among women, those without college degrees and those earning less than $60,000 a year.

The survey found a small increase in those planning to move to new jobs, with 11.6 percent of respondents saying in January they planned to find a new employer, compared to 10.6 percent who felt way in July 2023.

A large number of 4.4% of respondents they said they expected to lose their job, up from 3.9% in the survey a year ago, even as a growing number of respondents expecting to receive at least one job offer in the next four months rose.

The report also looked at the state of workers’ so-called reserve pay, which is what potential new hires say should consider taking a job. That wage has skyrocketed in recent years amid tight labor markets and high levels of inflation.

The reservation wage was $81,147 in July, down slightly from the previous quarter’s record high of $81,822, but up considerably from the $78,645 reported in July 2023. Contrary to what workers say they have to accept a job, the expected salary offers for a new job decreased. to $65,272 in July from $67,416 a year ago.

The The New York Fed said in a separate blog, the increase in reservation pay in recent years looks high, but is more modest when the increase in inflation is taken into account. While wages rose 31.4% between March 2020 and July this year, they rose 8.2% when adjusted. for inflation, after falling in real terms over the previous four years COVID 19 pandemic.

“This shows that while some of the increase in respondents’ reserve wages is due to inflation, there has still been an increase in the minimum compensation respondents require to accept new job offers in real terms,” New York Fed the economists wrote. They also noted that in real terms the reserve wage has settled and remained virtually flat since early 2021.

working-class growing dissatisfaction with their compensation and employment opportunities coincides with falling inflationary pressures and an increase in the unemployment rate.

TOPICS
USA New York Talent