More Workers Are Seeking New Jobs as Wage Dissatisfaction Grows

A new survey shows that the ranks of job seekers are growing.

A report released this week by the Federal Reserve Bank of New York showed that the share of people looking for new employment in July was at its highest level in more than a decade. In total, 28% of respondents said they were job-hunting, while a record-low 88% of those who had a job four months ago, the last time the survey was conducted, said they still worked the same job. 

The survey results come as investors are jittery about labor data after an unexpected jump in the July unemployment rate sent financial markets reeling earlier this month. Federal Reserve officials have said they are beginning to follow labor market trends more closely as inflation comes in line, potentially setting up an interest rate cut at the September meeting of the central bank’s policy committee. 

Women More Likely to Transition to New Job

The New York Fed’s Labor Market Survey for July showed that the proportion of workers who said they were transitioning into new jobs was also at its highest level in the survey’s decade-long history. 

One reason that job transitions may have been higher was workers reported being increasingly unhappy with their wages, benefits, and job promotion opportunities. Women were more likely to be dissatisfied with their compensation and more likely to be transitioning to new work.

Workers also lowered their wage expectations, though they are still higher than pre-pandemic levels. The minimum salary they said they would accept was higher than July 2023 levels but down from the peak of March 2024.