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Survey: Fewer Americans are switching to new jobs

Written on Sep 13, 2022

The number of Americans quitting their jobs for a different one declined in July, according to a Federal Reserve Bank of New York survey, a sign the so-called Great Resignation is slowing down.  

The rate of transitioning to a different employer declined to 4.1% in July, compared with 5.9% the same month one year ago, according to the New York Federal Reserve's Consumer Expectations Labor Market survey. The decline was most pronounced for women and for respondents with a household income less than $60,000.  

"The average expected likelihood of receiving at least one job offer in the next four months retreated slightly to 21.1% from 21.6% in July 2021, remaining below pre-pandemic levels," the survey said.  

Despite that, workers are still searching for new gigs: 24.7% of individuals reported looking for a new job over the past month, which is up from 24% one year ago. The increase was driven by respondents under the age of 45 who hold a college degree.  

About 21.1% of individuals said they have received at least one job offer over the past four months – up from 18.7% last July. The average full-time wage offer has grown to $60,764 from $58,469 one year ago.  

Workers are growing less satisfied with their pay, however, with wage compensation satisfaction retreating from 58.2% to 56.9% in July.  

The Labor Department reported earlier this month that average hourly earnings for all employees actually declined 3% in July from the same month a year ago when factoring in the impact of rising consumer prices. On a monthly basis, average hourly earnings dropped 0.6% last month, when accounting for the inflation spike.  

As a result, workers are increasingly anticipating higher wages when they accept a new job.  

"Conditional on expecting an offer, the average expected annual salary of job offers in the next four months increased to $60,310 from $57,206 in July 2021, reaching the second highest reading of the series," the survey said. "The highest reading was recorded in March 2021."