A Majority of Working Americans Say Job Market Headed in Right Direction
SnagAJob.com survey finds workers can better handle everyday expenses should job loss occur
RICHMOND, Va., Jan. 4, 2010 – Even as American workers are financially better prepared to handle a potential job loss, a majority (56%) of them foresee an imminent rebound in the U.S. job market, according to a just-released survey from hourly job Web site SnagAJob.com.
The telephone survey, which was conducted in December by Ipsos Public Affairs on behalf of SnagAJob.com, found that one in four working Americans (24%) believes things are improving and is optimistic about the job market, while one in three (32%) doesn’t yet see an improvement but is optimistic things will improve shortly.
Meanwhile, such optimism that the job market will improve doesn’t mean that the recession hasn’t affected how employed Americans have been living their lives. For the second year, the SnagAJob.com survey tracked for how long working Americans say their household would be able to pay basic expenses such as rent/mortgage, food and transportation costs if they were to lose their job tomorrow. Over the past year, the median time a household can survive has increased from four months (120 days) to six months (180 days), a 50 percent improvement.
“Employed Americans spent the last year commiserating with out-of-work friends and family members, watching businesses close and seeing the federal government prop up various industries,” said Shawn Boyer, CEO of SnagAJob.com. “And they’ve taken these turbulent times to heart. We’ve seen government data that the personal savings rate has improved – more than doubling when you compare third quarter 2009 with the same period in 2008 – and what this SnagAJob.com survey shows is that Americans have put into place a much more substantial cushion for emergencies. ”
Whether they’ve been able to save more or not, not every working American shares optimism that the job market will improve. Nearly one in 10 workers (9%) says the job market is status quo and one in three workers (33%) says the job market is not improving and they do not expect it to do so soon.
Desire for Bigger Paycheck Motivates Job Search
The survey suggests slightly more working Americans will be looking for another job in 2010 (28%) than in 2009 (26%). Among those who will look for a new job in 2010, one in three (35%) indicates that the main reason they’re doing so is the need to make more money, similar to the four in 10 (37%) who indicated that this was their main reason for job hunting last year. Perhaps also driven by the desire to bring home more income, the No. 2 reason employed Americans will be looking for a new work in 2010 is to add an additional job, (16%, up 12 points).
“Year-to-year, we’re seeing a fairly significant jump in the number of Americans who intend to look for an additional job,” Boyer said. “This is likely partially driven by the number of part-time workers in the current job market who would like more hours. The Bureau of Labor Statistics is tracking more than 9 million U.S. workers who have accepted part-time positions because they have been unable to find full-time work. Added to that, there also are folks looking to supplement a full-time job with an extra paycheck.”
Other primary reasons to job hunt in 2010 include the fact that their current company is having a tough time (9%, up 1 point) and relocation (6%, down 4 points). Interestingly, the incidence of perceived job insecurity (6%, down 13 points) or being unhappy at their current job (5%, down 6 points) is down significantly.
“For those who are fortunate to be employed, American workers are more confident,” Boyer said. “They are feeling that their employers have – for the most part – come through on the other side, and there isn’t a daily fear of a layoff looming. This sentiment is reinforced by the fact that we finally saw the unemployment rate tick downward in November.”
Nearly Three-Quarters of Workers Will Stay Put, Citing Happiness as No. 1 Reason
Among the 71 percent of working Americans who will NOT be looking for another job in 2010, the main reasons they’re not looking for another job chalks up to being happy at their current job (63%, down 2 points), considering themselves fortunate to have a job (13%, down 4 points) or that they do not consider now a good time to be searching for a job because times are tough (10%, up 3 points).
Survey Results by Demographics
Below are some select findings according to demographics:
- Lower-income bracket says job market improving: Working Americans whose family earns less than $25,000 a year are most likely (36%) to say that things are already improving, compared to those who earn $25,000 to $50,000 (21%) or more (24%).
- Younger Americans more likely to be on the hunt: Perhaps still trying to find their niche, younger Americans ages 18-34 (41%) are much more likely to be looking for a job than middle-aged (24%) or older (13%) Americans.
- Part-time workers and hourly workers more likely to be on the hunt, too: Part-time workers (54%, up 13 points) are nearly three-times more likely than full-time workers (20%, down 3 points) to say they’re going to be looking for another job in 2010. Hourly employees also will be on the hunt with four in 10 (38%, up 9 points) job seeking versus 15 percent (down 7 points) of salaried employees.
- Lower -income bracket has not increased its emergency cushion: Those with a family income under $25,000 can only manage for a median of 30 days before they fall behind. This is the same length of time as last year.
- Northeast financial position more secure: By region of the country, those in the Northeast have made the greatest strides in being able to pay for their daily expenses if they were to experience a job loss. Last year, the median in this region was 90 days, the same as the West. But the Northeast is now reporting a median of 180 days, which is double the West, a region that has remained stationary at 90 days.