Unusual Whales

Resentment is sweeping through the American workforce

Unusual Whales -

Workers in the U.S. are feeling stuck, with limited chances for advancement and fewer opportunities to switch to better jobs.

Why it matters:

This marks a sharp shift from the booming job market of 2022. Back then, employees were quitting at record rates, job openings were plentiful, and higher pay seemed within reach for many.

The big picture:

Employers are playing it safe, says Daniel Zhao, lead economist at Glassdoor. Companies are avoiding major shifts in hiring strategies, resulting in fewer chances for workers to climb the career ladder.

  • Many workers are staying in the same role for years without prospects for internal growth or opportunities elsewhere.
  • A recent Glassdoor survey of 3,400 professionals found that 65% feel stuck in their current jobs.
  • "As workers feel stuck, pent-up resentment boils under the surface," Zhao noted in a report released yesterday.

State of play:

On the surface, the job market seems stable, with unemployment at a relatively low 4.1%. However, underlying trends suggest stagnation.

  • The quit rate in September was 1.9%, the lowest since June 2020 and a level last seen (outside of COVID disruptions) in 2015.
  • This is a far cry from the heights of the "Great Resignation" just a few years ago.

By the numbers:

  • There were 7.4 million job openings in September, down by 1.9 million from the previous year, though still above 2019 levels.
  • Layoffs remain low, but that offers little solace to workers seeking new jobs or starting their careers.
  • Job switchers are increasingly taking pay cuts: 17% of those who changed jobs this year accepted lower salaries, compared to 14% in 2019, per Glassdoor data.

Zoom out:

The extraordinary labor market of a few years ago, where worker leverage was at its peak, makes today’s stagnation feel even more disheartening.

Zoom in:

The tech industry is especially hard-hit. During the 2010s, a "war for talent" drove aggressive hiring and soaring wages in tech, which only accelerated post-pandemic.

  • Some companies even "hoarded" talent during the boom.
  • Now, those days are over. Glassdoor reviews show a 7.5% decline in employee satisfaction with career opportunities in tech compared to last year.
  • "Tech is the poster child of the problems we're seeing right now in the job market," Zhao says. "Many workers feel that the promise once offered to them no longer holds true."