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Cryptopolitan 2024-12-24 12:08:31

NY Fed survey reveals workers are demanding higher salaries as AI threatens job security

NY Fed survey reveals workers are demanding higher salaries as AI threatens job security

A Federal Reserve Bank of New York survey shows that more workers are uneasy about losing their jobs. Their fears are tied to companies threatening to replace their positions with AI. Nonetheless, these anxieties haven’t caused job seekers to lower their salary demands. The New York Fed asks up to 1,000 people about their employment outlook every quarter. The latest results showed that 4.4% of workers think they might be out of a job within several months. This has hit a record high, particularly the highest number since March 2020, at the outset of the pandemic. However, these job security fears are not 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 nearly $20,000 since March 2020. This is the so-called reservation wage, the minimal wage some would accept for a new job. AI and economic uncertainty add to workers’ stress Workers’ concerns are not unfounded. It’s no news that advancements in AI and other economic challenges are threatening people’s livelihoods. Analysts have described it as the “perfect storm” for mass unemployment, as per Korn Ferry’s recent report . Klarna’s CEO, Sebastian Siemiatkowski has also said he hopes AI will replace 1,800 employees one day, and that’s not too far off. On the other hand, Tech giant Cisco also laid off thousands of employees this year as part of a drive to invest more in AI. Still, most of the workers feel stuck in their jobs. On wages and career opportunities, Fed data shows widespread discontent among women, people without college degrees, and households making less than $60,000 a year. Moreover, some are even demanding higher pay from new employers while they can because there are fewer chances of promotion. More workers are seeking new jobs than during the Great Resignation The job market has become concentrated with challenges now as more people are actively looking for new jobs. The Fed’s survey shows that 30% of respondents said they were searching for jobs, compared with 19% last summer. That’s the highest number of job seekers since March 2, 2014, when 32% of professionals were looking for an exit. During the pandemic in March 2021, 4 million US citizens quit their jobs, while 20% of the people in the Fed’s survey were looking for new workplaces. Workers are currently changing jobs at a record 7.1% rate. As compared to the Great Resignation, only less than 5% of workers switched to new companies. A Step-By-Step System To Launching Your Web3 Career and Landing High-Paying Crypto Jobs in 90 Days.

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