American workers are losing their passion for work. A tough job market is making it harder to leave.
A Gallup survey found that US employee engagement fell to 29%, its lowest since 2011. Economists say a weak job market is leaving workers frustrated.
A recent Gallup survey revealed that only 29% of US workers feel engaged at their jobs, marking the lowest level of engagement since 2011. This disengagement is attributed to the challenging job market, which makes it difficult for employees to leave their positions. The survey, which polled adults, found that hybrid and remote employees in organizations that have adopted AI experienced particularly large declines in engagement.
Gallup's Jim Harter explained that the drop in engagement was likely due to a lack of clear expectations and feelings of support from colleagues. He noted that AI adoption may be moving faster than the necessary communication and managerial support to effectively implement it. Employees are also frustrated by the slow hiring and firing process in the current job market, which makes it hard for them to leverage job offers elsewhere to negotiate better pay.
Cory Stahle, a senior economist at Indeed, pointed out that the low-hire, low-fire job market has consequences for those who want to switch jobs or receive a raise. He emphasized that while a low-fire job market provides job security, it also means employees may not see their wages keeping up with the rising cost of living.
The quits rate, which measures the number of workers leaving their jobs, has increased to 2.1% in September, but remains lower than the Great Resignation levels observed a few years ago. Daniel Zhao, Glassdoor's chief economist, observed that soft hiring impacts both the unemployed and employed, as those with jobs have fewer opportunities to advance their careers or negotiate better terms with their employers.
Zhao suggested that workers might be stuck in jobs that no longer suit their needs due to difficulty finding new roles. He warned that as workers remain in unsuitable positions, they may feel frustrated and experience a sense of career stagnation. The New York Fed's consumer survey revealed that only 42.1% of respondents felt optimistic about promotion prospects as of July, a slight improvement from March but still low in comparison to previous years.
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