For the first time in the past decade US workers under 35 are more satisfied with their current wages than those over the age of 55, according to a report from the Conference Board poll on workplace satisfaction. This is clearly a result of the current labor market conditions in the United States with unemployment at historical lows and the general increase in wage rates. As a result, the demand for labor in the US is currently so high that firms are willing to pay higher wages to retain their young talent, where as other employers are trying to attract talent with higher salaries. Americans are feeling a sense of job security now, and are overall probably producing more because of it, and also improving the consumer confidence index in America. 46% of millennials and Generation Z workers are now reporting to be satisfied with their compensation, a jump from 36% in the previous year. Overall, this increase in satisfaction can only lead to positive impacts on the economy as these workers, whom will make up much of the future labor force, are now more likely to produce more as well as spend and reinvest in the nation's economy.
https://www.whitehouse.gov/briefings-statements/wall-street-journal-younger-workers-report-biggest-gains-happiness-pay/
Lucas, do you believe this will be temporary or a trend of the future? Personally, I believe this is a reflection of the strong economy as you said, and I think this will change if the rumors of a recession are true. A recession will obviously mean job loss, do you think it will affect the Gen Zs and millennials more than those over 55 years old?
ReplyDeleteUndoubtedly, if a recession does indeed threaten then we will likely see a rise in the unemployment rate. However, I don't see this affecting the wages of one demographic more than the other. I do find it interesting that younger skilled workers are now seemingly being paid more on their productivity rather than earning a below market-average "entry-level" salary.
DeleteLucas and Nick, have either of you ever come across a study on how damaging a recession towards the start of someones career vs the end? I wonder if some of this dissatisfaction in the older demographic is being fueled by a fear of a recession. As people in that demographic have dramatically greater market exposure due to requirement savings, they are hoping to prepare for it by saving more cash through a higher paycheck.
ReplyDeleteLucas, I can see how workers today could be more satisfied with minimum wage across the country is increasing to as much as $15 an hour. If this continues to every city, when goods and services become more expensive to counterbalance the increase in wage, do you believe they will stay satisfied with their pay?
ReplyDeleteCole, I believe that as long as increases in wages are increasing more than inflation the overall satisfaction will remain
DeleteLucas, I believe there is still a large dissatisfaction with worker pay between Millennials and Gen Z workers. Although there was a 10% increase in satisfaction, the percentage is still under 50%, meaning that the majority of Gen Y and Gen Z workers are dissatisfied with their current pay. If the trend continues and there is another 10% increase in the following years, only then can a real conclusion be made.
ReplyDeleteDespite this number being under 50% it is still worth noting that it is the highest it has been since at least 2011, which relatively speaking is significant
DeleteCole, I believe that the satisfaction with their compensation is only temporary because as your stated the prices for goods and services will undoubtedly increase and when that happens I feel the satisfaction level will fall again.
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