A New York Fed survey showed that fewer Americans are turning to new jobs
The number of Americans who quit their jobs for a different job fell in July, according to a survey conducted by the Federal Reserve Bank of New York on Monday, signaling a slowdown in the so-called Great Resignation.
The transfer rate to a different employer fell to 4.1% in July, compared to 5.9% in the same month a year ago, according to the New York Federal Reserve’s Labor Market Consumer Expectations Survey. The decline was most pronounced for women and for respondents with household incomes of less than $60,000.
“The average likelihood of receiving at least one job offer in the next four months declined slightly to 21.1% from 21.6% in July 2021, remaining below pre-pandemic levels,” the study said.
Despite this, workers are still looking for new gigs: 24.7% of individuals reported looking for a new job within the past month, an increase from 24% one year ago. This increase was driven by respondents under the age of 45 with a college degree.
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Furthermore, about 21.1% of individuals said they had received at least one job offer in the past four months – up from 18.7% last July. The average full-time pay offer grew to $60,764 from $58,469 one year ago.
However, workers’ satisfaction with their salaries is lower, with satisfaction with wage compensation declining from 58.2% to 56.9% in July.
For months, newly empowered workers have been leaving their jobs in favor of better wages, working conditions and hours as companies attract new workers with higher salaries – a trend dubbed “Big Resignations”. As a result, Americans’ incomes are rising across the board as employers ramp up hiring to make up for losses or try to compete with other businesses for workers.
An incredibly tight labor market is fueling record-high inflation, with millions of workers seeing the biggest wage gains in years — the result of companies competing with each other for a limited number of employees. Earnings rose 5.2% in July from a year earlier, well above the pre-pandemic average of 3%, according to the Labor Department. On a monthly basis, wages rose 0.5%, hotter than economists had expected.
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But inflation is quickly eroding those gains.
The Labor Department reported earlier this month that average hourly earnings for all employees actually fell 3% in July compared to the same month a year ago when it factored in the impact of higher consumer prices. On a monthly basis, average hourly earnings fell 0.6% last month, when inflation is rising.
As a result, workers increasingly expect higher wages when they accept a new job.
Provided that an offer is expected, the projected average annual salary for job offers in the next four months increased to $60,310 from $57,206 in July 2021, the survey said, reaching the second highest reading in the series. The highest reading was recorded in March 2021.”