Unsatisfied U.S. Workers Seek Better Compensation, New York Fed Survey Reveals
By Michael S. Derby
A recent survey by the New York Federal Reserve shows that American workers are increasingly dissatisfied with their current compensation packages. According to the Survey of Consumer Expectations Labor Market Survey for July, satisfaction with both wages and non-wage benefits has declined among respondents.
In July, only 56.7% of respondents reported being satisfied with their pay, down from 59.9% in July 2023. Similarly, satisfaction with benefits dropped to 56.3% from 64.9%, and satisfaction with future career opportunities fell to 44.2% from 53.5% over the same time period.
Notably, the decrease in satisfaction was most pronounced among women, individuals without college degrees, and those earning less than $60,000 annually. The survey also found an increase in the number of respondents planning to seek new employment opportunities, with 11.6% indicating a desire to switch jobs compared to 10.6% in July 2023.
Additionally, the survey highlighted a record-high 4.4% of respondents anticipating job loss, up from 3.9% in the previous year. Despite this, more respondents expect to receive job offers in the next four months.
The report also examined workers' reservation wage, which represents the minimum salary they would accept for a new job. While the reservation wage has increased significantly in recent years, the New York Fed economists noted that the rise becomes more modest when adjusted for inflation.
Overall, workers' discontent with their compensation and job prospects comes amid decreasing inflation and a rising unemployment rate.