Workers aren’t happy with their pay. But they’re not looking to switch jobs, either.
People are clinging to their jobs despite dismal feelings about wages and promotion opportunities, according to the New York Federal Reserve’s latest labor market survey.
In March, survey respondents’ expected likelihood of switching to a new employer hit 9.7%, the lowest level since March 2021. That tracks with government data from the month prior, which showed the number of quits as a percent of total employment at 1.9% as skittish workers try to avoid braving an uncertain job market.
But workers’ reluctance to quit can also give bosses the upper hand and suppress wage competition — putting consumers in a tough spot as price increases threaten to outpace pay gains.
Indeed, the New York Fed’s labor market survey showed that workers’ satisfaction with wage compensation plunged from 55.6% in November, when the last survey was conducted, to 52.3% in March. That was the lowest level since the New York Fed began tracking the data in March 2014.
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Wage satisfaction was particularly bleak for lower-income workers, with just 30.9% of those making less than $60,000 feeling decent about their current pay.
Overall satisfaction with promotion opportunities, meanwhile, also hit 41.2%, another record low dating back to 2014. Women felt especially negative, with their satisfaction reaching 35.2%.
Fewer people say they’re searching for a job compared to November, consistent with recent reports that the labor market might be stabilizing. The unemployment rate in March, at 4.3%, was an improvement from November’s 4.6%.
And some workers’ reluctance to jump to a new workplace might have to do with pay, rather than just anxiety. The minimum pay respondents would need to accept another job hit a record high in March of nearly $85,000, driven by men — who wanted $26,000 more than women on average — and workers with a college degree.
Emma Ockerman is a reporter covering the economy and labor for Yahoo Finance. You can reach her at emma.ockerman@yahooinc.com.
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