Threatens Job Security | Cryptopolitan
A survey by the Federal Reserve Bank of New York shows that more workers are feeling uneasy about losing their jobs. Their concerns are linked to companies threatening to replace their jobs with artificial intelligence. However, these concerns have not led job seekers to lower their wage demands.
The New York Fed asks up to 1,000 people about their employment outlook every quarter. The latest results show that 4.4% of workers believe they could be unemployed within a few months. That’s a record high, and the highest number since March 2020, at the start of the pandemic.
However, these job security concerns aren’t enough to deter job seekers from lowering their salary demands. Workers won’t accept a new role for less than an average of $81,147, a jump of about $20,000 since March 2020. That’s the so-called reservation wage, the minimum wage some would accept for a new job.
Artificial Intelligence and Economic Uncertainty Add to Worker Stress
Workers’ fears are not unfounded. It’s no news that advances in artificial intelligence and other economic challenges are threatening people’s livelihoods. Analysts have called it a “perfect storm” for mass unemployment, according to a report .
Sebastian Siemiatkowski, CEO of Klarna, also said he hopes AI will replace 1,800 employees one day, which is not too far away. Meanwhile, tech giant Cisco has also laid off thousands of employees this year as part of a push to increase investment in AI.
Yet most workers feel stuck in their jobs. When it comes to wages and job opportunities, Federal Reserve data shows widespread discontent among women, people without college degrees, and households earning less than $60,000 a year.
Moreover, some demand higher wages from new employers when they can afford it because the chances of promotion are less.
More workers are looking for new jobs than during the Great Retreat.
The job market is now very challenging as more people are actively looking for new jobs.
The Fed survey shows that 30% of dents said they were looking for jobs, up from 19% last summer. That’s the highest number of job seekers since March 2, 2014, when 32% of professionals were looking for a way out.
During the pandemic in March 2021, 4 million Americans lost their jobs, while 20% of people in the Federal Reserve survey were looking for new jobs.
Workers are currently changing jobs at a record rate of 7.1%. Compared to the Great Resignation, less than 5% of workers are moving to new companies.