The latest jobs report from the government Friday shows 339,000 jobs were added in May. Analysts view this as a sign of a strong labor economy, suggesting that it is defying expectations of a future recession. Others note it still muddies the Federal Reserve’s intentions to curb inflation.
Much of the job gains were dispersed last month broadly across industries. The addition, however, raked-in 64,000 more jobs for the sector of professional and business services, among others. Wage growth increased slightly in May by 0.3% after rising in April by 0.4%, lowering the year-on-year increase from 4.4% to 4.3%. Last year, it peaked at 5.9%.
Moderation in wage growth in the report from the Bureau of Labor Statistics could play a new level of significance for workers and employers alike. Meanwhile, in a survey from Jooble, a telling piece of data shows that 69.8% of survey respondents said they are ready to quit their current jobs if the pay doesn’t increase.
The survey sought the perspectives of nearly 1,260 American workers regarding their salaries, expectations around raises, and their overall satisfaction or motivation for compensation.
ASKING FOR A RAISE? YAY OR NAY
Reporter Jeffry Bartash wrote for MarketWatch.com that “the economy has been adding so many jobs it’s created a shortage of workers and is pushing wages higher.” Depending on your position and industry, a worker’s shortage could be leverage when asking your boss for more money. But how many are really willing to have that conversation? According to Jooble’s survey, 62.3% of respondents said they plan to ask about a salary increase in the next quarter, in contrast to a 37.7% who said will not.
Jooble, an international job search website, surveyed 1,264 people between April 15-May 15. The jobs of those surveyed varied and included specialists in the following sectors: hotel or restaurant, tech, education, medicine, agriculture, construction, production, logistics and others, according to the survey found here. Those surveyed included adults above the age of 18.
Just under half of the respondents (48.3%) had five or more years of professional experience, while the rest had less than five years. The survey consisted of an anonymous form of 13 questions with suggested answers or the possibility for respondents to express their point of view. While 69.8% of workers responded they are prepared to quit if their salaries don’t increase, 30.2% answered they are not prepared to quit.
SOME PREFER FINDING A NEW JOB ENTIRELY
When asking for salary increase, respondents named an increase in the average market salary and raising qualifications as reasons. Others named reasons like working in one place for a long time and feeling deserving of a raise or conditions of inflation. In the same article, Bartash writes “rising pay has added to price pressures and left inflation stuck in the 4% to 5% range — three times higher vs. pre-pandemic levels.” In April, the prices for consumer products rose again, and a recent Gallup poll claims that 61% of Americans agreed that the recent price hikes have caused financial hardships for them.
And according to the Jooble survey: “Of those surveyed, 58.2% of workers would choose to talk to their current employer about a raise, while 41.8% would prefer to find a new job with a higher salary.”
Some respondents (35.4%) revealed they already received a salary increase over a year ago, while 29.7% say their salary increased three months ago, 19.5% a year ago, and 15.4% of respondents said about six months ago.
81% ARE HAPPY WITH NON-MATERIAL INCENTIVES LIKE EXTRA TRAINING
About 20% of participants of Jooble survey said they are aiming for at least a 40% increase in wages. A greater majority of those (34.2%) said they’d like to see a 10-20% increase. Perhaps a number more revealing is that nearly 81% said in addition to pay, they would also be satisfied with “non-material incentive opportunities”, such as payment through extra training from the company, a paid vacation ticket, or other incentive opportunities.
Non-material incentives — or non-cash benefits employers offer — would not suffice for 18.9% of specialists.
The survey explores deeper into why someone wouldn’t ask for a raise. About 35% responded that they feared losing their jobs. Other reasons cited include a short working duration or an earlier agreement to compensation.
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