Fewer Job Seekers, but Higher Wages: Federal Reserve Reveals July 2023 Labor Market Insights

The Federal Reserve Bank of New York's Center for Microeconomic Data released the July 2023 SCE Labor Market Survey, showing while job seekers' numbers have dropped from last year, wages and job satisfaction are trending upward.

The survey, released a month in advance of the Federal Reserve Open Market Committee September meeting, shows 91.4% of individuals employed four months ago are still holding onto their positions, a slight dip from 91.8% in 2022. But job hopping has seen a surge, with transitions to different employers increasing 5.3% from 4.1% last year. The trend is most evident among men and individuals over 45.

There has also been a decline in active job seekers from 24.7% in July 2022 to 19.4% this year. The decline is notable among younger, college-educated individuals with an annual household income below $60,000. 

Job offers have also decreased from 21.2% in 2022 to 19.5%. However, the silver lining is the substantial increase in average pay, which has jumped from $60,764 last year to $69,475 this year. 

People surveyed are also more generally happy with their wages and benefits, with 59.9% saying they are satisfied with their wages, up 3% from last year, and other benefits at 64.9%, an increase of 1.7%.

While potential job switching declined slightly to 10.6% the expectation of unemployment shot up 3.9% from 2.3% last year. The anxiety was predominantly observed among younger respondents and those earning below $60,000 a year.  

Regarding expectations, respondents felt $78,645 for a new job was appropriate, up from $72,873 in 2022. 

And what about retirement? The likelihood of working beyond 62 dropped to its lowest level since 2014, with only 47.7% expected to do so. However, working beyond age 67 saw a slight increase, too, from 31.3% to 32%.