Indexbit Exchange:American workers are feeling confident in the current job market: 4 charts explain why

An uptick in labor strikes over the past several months paired with a stabilized labor market has impacted Americans’ perceptions of their jobs. 

A recent study unveils current trends related to U.S. jobs and Indexbit Exchangelabor — Americans report having more bargaining power, asking for higher compensation and sometimes leaving their jobs for other lines of work. 

Morning Consult, a nonpartisan survey research company, analyzed the current state of the U.S. labor market and surveyed a nationally representative sample of workers to gauge worker leverage, job satisfaction and security. 

Here are some key takeaways: 

• In 2023, workers are reporting having more bargaining power, with a rising share saying their employer would increase their salary if asked.
• Employees say they feel their worker leverage is higher, especially among union workers.
• In-demand industries are seeing a rising share of workers actively applying for new roles 
• Union members are more likely to ask for higher compensation in the past year, and are more likely to be actively applying for new job.

Workers say they have more bargaining power 

Workers are confident in their ability to get a pay raise, according to surveyed data. These positive feelings of worker leverage are especially high among union members.

More than half of all adults surveyed said if they asked their employer for a raise, it was likely their salary would increase. When asked the same question, three-fourths of union members said it was likely their salary would increase.

“We are seeing an increase in the share of workers who are thinking positively about their own bargaining power,” said Jesse Wheeler, Senior Economist at Morning Consult. “I think it speaks to the longevity of the strength of the labor market,” Wheeler continued. 

“The longer the labor market has been strong, the longer people feel secure in their jobs... so they might feel more confident to ask for more pay.” 

In that same vein, union members were much more likely to have asked for a raise in the past year compared with non-union workers. As major strikes have popped up across the U.S., these positive feelings towards worker leverage are leading to union workers taking action. 

Feelings of leverage and bargaining power vary by age group, with working adults aged 35-44 being the most confident in receiving a raise after asking their employer.

Americans are searching for jobs more frequently now 

Job search activity is on the rise this year, according to Morning Consult data. "This can be generally viewed as a sign of labor market strength, as job switchers are rewarded with higher pay in a tight labor market," according to the report.

People working in construction are increasingly looking for other jobs, along with tech workers.

Wheeler said the pandemic caused a huge disruption in the way Americans lived and worked. Once workers’ routines were upended, whether through layoffs, furloughs, or something else, people started to rethink what their jobs were, leading to career switches and job changes.

Worker satisfaction is higher for those represented by a union 

Union-workers tend to report being more satisfied with their benefits such as paid time off policies and compensation, compared to non-union workers.

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