It’s a natural reflex, part of human nature: When the pressure’s on, we look to a solution.
For consumers living paycheck to paycheck, the prospect of moving on to the next job, with the promise of better wages or better job security, might be a strategy that alleviates at least some of the burdens of making ends meet.
Data from PYMNTS Intelligence adds some color to how that sector of the economy sees jobs and wages. Previous surveys of paycheck-to-paycheck consumers (roughly two-thirds of individuals and households) showed mixed sentiment about changing jobs.
In October 2022, as detailed in the “The Employment Edition” of the Paycheck-to-Paycheck report, only about 40% of consumers said that their jobs met their salary expectations. Yet the uncertainty of the economy meant that the great majority of individuals we surveyed also were staying put: Only three in 10 workers said at the time that they envisioned getting new jobs in the ensuing six months.
Fast forward to more recent sentiment: This year, we found that a bit more than a third of consumers anticipated wage increases, which was a decline from previous expectations held by 43% of respondents. Drilling down a bit, while 38% of individuals said they’d anticipated switching jobs this year, 56% of those living paycheck to paycheck with issues paying bills claimed the same, which indicates that the constraints of their financial lives would incentivize them to consider a move to new employers.
The most recent jobs report may prove a tailwind for job searching as 2024 fades, and “what comes next” comes more firmly into focus.
A report from the U.S. Bureau of Labor Statistics, released Friday (Dec. 6), noted that employers added 227,000 jobs last month, more than the consensus forecast of 220,000, indicating a sharp rebound from the previous month’s initially-estimated 12,000 additions. That number has now have been revised to 36,000 roles amid the headwinds of severe weather and worker strikes. In addition, wages were up 0.4% in November, where consensus had been 0.3%, and the latest reading indicates 4% annualized growth in paychecks.
PYMNTS Intelligence has found that the unemployment rate slightly increased to 4.2%, representing 7.1 million unemployed individuals. This rate has risen from 3.7% in November 2023, indicating a year-over-year uptick in unemployment, in part as labor force participation has ticked lower.
Within healthcare, employment surged by 54,000 positions, with ambulatory healthcare services contributing +22,000 and hospitals adding +19,000 jobs. This consistent growth reflects the sector’s resilience. In Leisure and Hospitality, there were 53,000 jobs created, the bulk of them at restaurants and bars. But retail was lower, off by 28,000 roles, led by general merchandise retailers, which shed 15,000 positions.
Revised data for September and October added a total of 56,000 jobs, reflecting more robust growth than initially reported. This data emphasizes the continued strength of healthcare and leisure sectors, contrasting declines in retail trade. It also highlights the economy’s resilience amid ongoing structural adjustments.
That resilience, headed into the end of the year, may be enough to spur at least some households to consider how, and when, they can make a leap to a new position next year.
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