Newsletter
Survey Insights: Nearly Half of Workers Plan to Look for a New Job Amid Cooling Job Market
The labor market is shifting, and the recent Bankrate Employment Security Survey reveals that nearly 48% of workers are considering a job change within the next year. This trend is notable given the economic landscape’s gradual shift from the post-pandemic hiring boom to a more stabilized job market. For workforce development professionals, these insights provide a glimpse into the evolving priorities of workers and how they adapt to economic changes.
The State of the Job Market: A Shift from Historic Highs
The labor market surged after the COVID-19 recession, giving rise to phrases like the “Great Resignation” and “quiet quitting” as workers leveraged unprecedented bargaining power. However, recent reports indicate that job growth is slowing, with just 114,000 new positions added in July 2024. Unemployment has crept up to 4.3%, a sign that economic conditions have cooled since the Federal Reserve began its interest rate hikes in March 2022. Despite these challenges, many workers remain hopeful and continue to explore new opportunities.
Worker Sentiment: Flexibility and Pay Still Top Priorities
While the job market has softened, many employees are still actively considering new roles. According to the Bankrate survey, 48% of workers plan to look for a new job over the next year. Younger workers, particularly Gen Z (64%) and millennials (52%), are leading the charge, with their sights set on opportunities that offer higher pay and more flexible work arrangements. This desire for flexibility has become a central theme in today’s job search, reflecting a shift in workplace expectations that began during the pandemic.
Economic Challenges and Job Security Concerns
The Federal Reserve’s measures to combat inflation have tempered the labor market, impacting job security for many workers. Approximately 21% of those surveyed report a decline in their employment situation since the interest rate hikes began. At the same time, 70% of respondents have expressed concerns about their job security, highlighting the uncertainty faced by many in the workforce.
For workforce development professionals, these findings underscore the importance of helping individuals navigate a more uncertain labor market. Developing strategies to support job seekers in building resilience, accessing training opportunities, and adapting to new career demands is crucial.
Supporting Career Transitions in a Cooler Job Market
As workers prepare for potential career moves in a less robust job market, three key strategies can enhance their transition:
1. Leverage Professional Networks: Building strong connections can accelerate the job search process. Encouraging workers to reach out to industry peers, past colleagues, and recruiters can open doors to new opportunities.
2. Maintain a Financial Safety Net: With the job search process potentially taking longer, an emergency fund of three to six months’ worth of expenses can provide a safety cushion during transitions.
3. Negotiate Smartly: Even in a cooling market, negotiation remains essential. Job seekers need the tools to effectively advocate for better pay and benefits, backed by market research and industry insights.
Looking Ahead: A Normalizing Job Market?
The current shifts may represent a return to a more traditional job market, where workers no longer wield the same post-pandemic leverage. As Mark Hamrick, Senior Economic Analyst at Bankrate, points out, this period of adjustment can feel challenging for those who became accustomed to the previous high demand for labor. Nonetheless, opportunities remain, particularly for those who stay proactive and adaptable in their job search efforts.
Did You Know…
- A comet’s tail always points away from the sun.
- If you get into the bottom of a well or a tall chimney and look up, you can see stars, even in the middle of the day.
- Everything weighs 1% less at the equator.
- In ancient times strangers shook hands to show that they were unarmed.
- Strawberries and cashews are the only fruits whose seeds grow on the outside.
- Mickey Mouse is known as “Topolino” in Italy.
It is never too late to be what you might have been.
George Eliot
Success can make you go one of two ways. It can make you a prima donna, or it can smooth the edges, take away the insecurities, let the nice things come out.
Barbara Walters
Manners are a sensitive awareness of the feelings of others. If you have that awareness, you have good manners, no matter what fork you use.
Emily Post
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George Washington Carver