Compensation Satisfaction Hits a New Low

Compensation Satisfaction Hits a New Low

Workers may not be actively seeking new jobs, but it’s not because they’re content with their paychecks.

According to the latest Survey of Consumer Expectations on the labor market, published by the New York Federal Reserve Bank on Monday, the percentage of workers actively looking for a new job dropped from 23.8% in November to 22.5% in March. While this decline suggests some stability, the survey reveals deeper dissatisfaction with compensation, especially among certain demographic groups. Notably, the drop was more pronounced for female workers and those under 45.

Another key finding from the survey shows a cooling in workers’ expectations of relocating to a new employer. Only 9.7% of respondents now anticipate moving jobs, marking a 1.4 percentage point decline from November. This is the lowest figure since March 2021, and the decline was most noticeable among workers without a college degree. Among those who did receive job offers, the proportion who had more than four offers dropped sharply, from 3.5% in November to just 1.8% in March.

When it comes to compensation, workers’ satisfaction has plummeted to the lowest level since the survey began in 2014. Only 52.3% of workers reported being satisfied with their current wages—a 3.3 percentage point drop from 55.6% in November. Similarly, satisfaction with non-wage benefits fell slightly by 0.6 percentage points, while satisfaction with promotion opportunities dropped a significant 3.1 percentage points.

Despite this general dissatisfaction, workers’ expectations for new job salaries have risen. In March, the lowest annual salary respondents would be willing to accept for a new position surged to a record-high $84,762. This increase is largely driven by higher expectations from men and those with a college degree.