Last year, as part of the “Great Resignation,” many workers were looking for new jobs with better pay and flexibility. This year, more workers are seeking new jobs than in 2022: More than half (56 percent) of the workforce is likely to look for a new job in the next 12 months, up from 51% in 2022, according to Bankrate’s 2023 job seeker survey.
The possibility of a recession this year has led to large companies such as Meta and Amazon implementing cost-cutting layoffs, and it also may be spurring workers to make new career moves. In 2023, workers say that higher pay, more flexible hours and working remotely are most important to them.
Bankrate’s job search insights
Workers are prioritizing their paycheck more than benefits. 30% of workers say higher pay is the most important quality in their employment moving forward, more than any other work perk.
But benefits aren’t unwelcome. 30% of workers say some kind of work-life benefit, such as flexible working hours (13%), the ability to work from home (12%) or more time off (5%) is the most important job quality in their employment moving forward.
Nearly a third of workers are headed out the door. 30% of workers say they’re likely to quit a job in the next 12 months.
And nearly a quarter of workers have already left. 21% of workers got a new job in the past 12 months.
Amid fears of a recession, job security is a common concern. 33% of workers are currently worried about their job security.
Over a third of workers say they’re very likely to look for a new job in the next year
Many workers are looking for greener pastures in 2023. Over one-third (37%) of workers say they’re “very likely” to look for a new job in the next 12 months, up from 32% in 2022.
Economic headwinds could pose challenges for job seekers, though. Job openings have softened as interest rates, set by the Federal Reserve, skyrocketed over the past several months. After a record-high 12 million job openings last year, the Bureau of Labor Statistics reported 10.8 million job openings in January 2023, according to Bankrate.
“The future trajectory of the economy, including whether job losses substantially accelerate as many expect, will help dictate how many workers look for a change, or will want to stay put,” says Mark Hamrick, a Bankrate senior economic analyst.
Though not everyone is looking for a new job entirely, nearly eight in 10 workers are looking to change something about their work:
Altogether, 79% of workers are looking to take action at work this year. Most commonly, 56% of workers are likely to search for a new job. Workers are also looking to try and optimize their work in additional ways:
— 47% are likely to ask for a raise at work.
— 42% are likely to ask for more work flexibility, such as different hours or the ability to work from home or remotely more often.
— 30% are likely to quit a job.
— 26% are likely to relocate for a job.
Younger workers are more likely to take action at work this year: 95% of Gen Z (age 18-26) are likely to take at least one career action, compared to 84% of millennials (age 27-42), 71% of Gen Xers (age 43-58) and 57% of baby boomers (age 59-77).
Specifically, more than half of Gen Z (55%) are “very likely” to search for a new job in the next 12 months, compared to 43% of millennials, 28% of Gen Xers and 13% of baby boomers.
Over one-third of younger workers are likely to quit a job in the next 12 months: 42% of Gen Zers and 36% of millennials are likely to quit their jobs in the next 12 months, compared to only 19% of Gen Xers and 15% of baby boomers.
Over half (54%) of parents with children under 18 are likely to ask for more flexibility at work, compared to only 40% of workers who aren’t parents.
Men were more likely to quit a job than women, with 32% of men saying they are likely to do so in the next 12 months, compared to 27% of women. Men are also more likely to relocate for a job in the next 12 months (30%, compared to 23% of women).
Workers with an income of $100,000 a year or more have a higher chance of asking for a raise at work than those who make less: 54% of those who make at least six figures are likely to ask for a raise in the next 12 months, compared to 46% of those who make under $50,000 a year. However, those who make under $50,000 are more likely than other income brackets to relocate for a job (33%) or look for a new job (66%) in the next 12 months.
With inflation soaring, nearly one in three workers say pay is the most important quality of their job
In 2022, the largest percentage of workers (55%) said the ability to work from home or have a more flexible schedule was more important than it was before COVID-19. Though many workers are still prioritizing remote and flexible working, top priorities in 2023 have shifted slightly. The largest percentage of workers this year say higher pay is the most important job quality to them moving forward, with 30% saying so.
“One of the lasting impacts on workers and those looking for work is the desire for workplace flexibility,” said Hamrick. “But in this environment of high and sustained inflation, workers are also prioritizing higher pay. While more than half of those in the workforce plan to look for a new job in the next year, many will also be pressing their employers for higher pay.”
Though some workers say pay is the most important job quality for them, others place importance on work culture and work-life balance. Over twice as many workers say higher pay is the most important job quality for them compared to the second-most popular option, flexible working hours (13%).
“If the significant share of workers indicating they plan to ask for higher pay are successful, they should also prioritize emergency savings during these uncertain times,” Hamrick said. “One way to maximize return on those hoped-for higher earnings is to automate savings through direct deposit using a high yield savings account.”
Altogether, 30% of workers said a work-life balance quality (flexible working hours, working remotely or having more vacation time) is the most important job quality for them going forward. Women (35%) are more likely than men (26%) to say work-life balance quality is most important to them.
Over 1 in 5 American workers got a new job last year
Over half (54%) of workers have asked for more work flexibility, asked for a raise, relocated for their jobs, got a new job, were laid off or simply quit over the last 12 months.
While 21% of workers received a new job in the last 12 months, a similar percentage of workers (19%) have asked for more work flexibility. In addition, 18% of people asked for a raise at work, while 11% quit their jobs.
The demographic most likely to have made, attempted or experienced a change at work was Gen Zers, at 69%, followed by 62% of millennials, 40% of Gen Xers and 35% of baby boomers.
Younger generations are also most likely to have gotten a new job in the last 12 months:
34% of Gen Z
20% of millennials
17% of Gen X
12% of baby boomers
Gen Z also was the most likely to quit their job in the last 12 months:
17% of Gen Z
13% of millennials
7% of Gen X
3% of baby boomers
Nearly one-quarter (23%) of millennials asked for a raise at work in the last 12 months, compared to 17% of Gen Z and 15% of both Gen Xers and baby boomers.
Millennials were also the generation most likely (26%) to ask for more work flexibility in the past 12 months, compared to 23% of Gen Zers, 13% of Gen Xers and 9% of baby boomers.
More Gen Zers and millennials were laid off from their jobs in the past 12 months (11% and 10% respectively) compared to Gen Xers and baby boomers (5% and 4% respectively).
Despite economic uncertainty, fewer people in 2023 are worried about job security than in 2022
As the U.S. faces the possibility of a recession, one in three (33%) of employed Americans are worried about their job security. However, fewer people are worried about job security than in 2022, when 39% of people told Bankrate they were worried.
Almost 1 in 10 (9%) of people are very worried about their job security, and lower income and younger workers are more worried compared to other demographics.
Those with a household income under $50,000 a year are the most worried (41%) about their job security of any income demographic, compared to 30% of those who make between $50,000 and $99,999 and 32% of those who make at least $100,000.
Millennials are the most worried about their job security of any generation (42% saying they are worried), compared to 36% of Gen Zers, 29% of Gen Xers and 16% of baby boomers.
3 tips to refresh your career in an economic downturn
1. Update your resume, but don’t panic.
The U.S. is more likely than not to enter a recession this year, but uncertainty remains. If you’re worried about being laid off, updating your resume or saving in preparation can help you prepare for the worst.
2. Be your own advocate.
If it’s been a year since you last had a conversation about raises, or you’re unhappy about your company’s return to the office mandate, start a conversation about your compensation. Not everyone will be able to have open conversations with their manager, but speaking up is the first step in ensuring that you receive equitable pay ahead of tough economic times.
3. Take advantage of your resources during the job search.
Whether you’ve been laid off or you’re just looking for a job change with better pay, tap into your available resources. Seek unemployment resources, research local markets for job opportunities and reach out to your network to seek a role that fits your needs.
