US job seekers rush to find new job before recession: survey
A number of Americans are rushing to get new jobs before a recession hits the country, according to a investigation on the job site Joblist.
Joblist surveyed more than 15,000 job seekers across the country from April to June 2022 to find out how concerned they were about rising inflation and a potential economic downturn, as well as whether they regretted taking a job. having quit their previous job during what has been dubbed the “Great Resignation.
Of the more than 15,000 job seekers surveyed, 11,088 were asked about their labor market outlook and expectations for the future, while 524 were asked about concerns related to the recession in particular.
Another 628 respondents who had left their previous job were asked if they regretted their decision.
Almost 48 million Americans left their jobs in 2021 according to Federal Reserve economic data, and resignation levels remained elevated throughout the first half of 2022.
The survey found that more than one in four people who left their previous job (26%) regretted their decision, while 42% of those who found a new job after leaving their previous job said the new job “did not meet their expectations. ”
The survey found that nearly half of job seekers (49%) believed the job market would deteriorate over the next six months and as a result, 60% said they felt more urgency find a new job before labor market conditions change. .
Two in three job seekers said they were ‘worried’ or ‘very worried’ about a possible recession, with 80% saying they expected the US to enter a recession next year .
Inflation still on the rise
The survey comes as prices continue to soar in the United States, with annual inflation hitting 9.1% in June, a 40-year high above the 8.8% predicted by economists.
While the US economy created 372,000 jobs in June and the unemployment rate was at 3.6%, inflation continued to rise and fears of recession grew.
On July 13, economist Mohamed El-Erian sounded the alarm in a Twitter thread about a third wave of inflationary pressures building across the country that is likely to “unleash” if not stopped. quick action by the Federal Reserve.
El-Erian, the former CEO of US investment management firm PIMCO, noted that while inflation is likely to decline over the next two months, a third wave of underlying causes of inflation ” will trigger if the Fed doesn’t get its act done.” together quickly.
“With the first best policy option now gone due to the first two stages of the ongoing Fed policy error, recession risks rise accordingly,” El-Erian wrote on Twitter.
“This threatens a second big blow for households, especially the most vulnerable segments of our society,” he added.
Meanwhile, economists now widely believe that Fed officials will raise interest rates another 75 basis points in July in a bid to combat skyrocketing inflation.
As fears abound over the cost of living and a possible recession on the horizon, the labor market is still showing signs of strength, with 11.3 million job vacancies at the end of May, that’s nearly two jobs for every unemployed person, according to the Bureau of Labor Statistics (pdf) reported.