Fed Survey Shows Lows in Employment and Dissatisfaction with Pay
I just came across the latest survey results from the New York Federal Reserve, and it’s clear that the U.S. labor market is facing some challenges. According to the survey, fewer people are reporting they are employed, more are looking for work, and dissatisfaction with pay is on the rise. This survey, which is conducted three times a year, provides a snapshot of labor activity, confidence, and satisfaction.
Employment Concerns
In July, there was a noticeable drop in the number of people who said they were employed compared to the previous survey in March. Only 88% of those who had jobs in March were still employed, marking the lowest percentage since the data collection began in 2014. Additionally, the number of people expecting to become unemployed rose to 4.4%, the highest in the survey’s history.
Job Search and Pay Dissatisfaction
The survey also highlighted that 28.4% of respondents had searched for a new job in the past four weeks, a significant increase from a year ago. This is another historic high since March 2014. When it comes to pay, satisfaction with current compensation dropped to 56.7%, down more than 3 percentage points from the same period in 2023. Satisfaction with benefits and opportunities for promotion also saw declines, particularly among women, those without a college degree, and respondents with household incomes less than $60,000.
Wage Expectations
Interestingly, while the typical wage offering for full-time jobs slightly declined to $68,905, the average “reservation wage” (the minimum amount workers would accept for a new job) rose to $81,147. This figure is up about $2,500 from a year ago but is just below the record high from the last survey.
Retirement Concerns
The survey also revealed that more people expect to work past the typical retirement age. The percentage of respondents expecting to work past age 62 increased to 48.3%, and those expecting to work past age 67 rose to 34.2%.
Implications for the Economy
These findings come at a time when the unemployment rate has been ticking higher, currently at 4.3%. Although this rate is low by historical standards, the recent rise has sparked concerns about a broader economic slowdown. In July, nonfarm payrolls saw a modest gain of just 114,000, making the upcoming August report highly anticipated.
Fed officials have noted that job growth has “moderated,” and there is widespread expectation that the central bank will reduce its key borrowing rate by a quarter percentage point at its next meeting in September. This would be the first rate cut in over four years.
For more insights on navigating the job market and finding opportunities, check out our Resource Hub and explore job listings tailored to diverse communities.
To read the full article by Jeff Cox, visit CNBC.