A Fed survey reveals rising job insecurity and declining satisfaction, sparking concerns about the economy
A recent New York Federal Reserve survey revealed signs of stress in the US labour market, according to CNBC.
The survey, conducted in July, showed a decline in the number of people reporting they are employed, an increase in those seeking work, and growing dissatisfaction with pay.
The survey, which is conducted three times a year, reflects rising concerns about job security and an increase in the number of individuals expecting to work beyond the typical retirement age. While workers continue to seek higher starting salaries, they are receiving lower offers.
Notably, the survey found that 88 percent of those who were employed in March remained employed in July, marking the lowest retention rate since data collection began in 2014.
Additionally, the percentage of respondents who anticipated becoming unemployed rose to 4.4 percent, the highest level in the survey’s history.
The proportion of people searching for a new job in the past four weeks also surged to 28.4 percent, a significant increase of 9 percentage points from a year ago, setting another record high since March 2014.
Regarding wages, satisfaction with current compensation dropped to 56.7 percent, down more than 3 percentage points from the same period in 2023. Satisfaction with benefits fell to 56.3 percent, a decrease of over 8 points from a year ago.
Additionally, satisfaction with opportunities for promotion declined to 44.2 percent, down from 53.5 percent last year, with the dissatisfaction being most notable among women, individuals without a college degree, and respondents with household incomes below $60,000.
The typical wage offers for full-time jobs in the past four months slightly decreased to $68,905. Meanwhile, the average “reservation wage,” or the minimum salary workers would accept for a new job, increased to $81,147.
This figure is up by approximately $2,500 from a year ago but remains just below the record high from the last survey.
The likelihood of respondents expecting to work past age 62 increased to 48.3 percent, with 34.2 percent anticipating working beyond 67, representing a rise of over 2 percentage points.
Although the unemployment rate, currently at 4.3 percent, remains low by historical standards, it has been rising, raising concerns about broader economic deterioration
July saw a modest increase of 114,000 in nonfarm payrolls, making the August report, set to be released in early September, highly anticipated.
Following their most recent meeting, Federal Reserve officials described job growth as having “moderated.” The central bank is widely expected to reduce its key borrowing rate by a quarter percentage point at its next meeting in September, marking the first rate cut in over four years.
