U.S. Workers Feel Less Engaged as Job Moves Become Harder

Gallup defines engagement as employees’ “involvement and enthusiasm” at work. It rose steadily during the 2010s, peaked in 2020 and has since declined. Gallup’s Jim Harter said the drop was particularly large among hybrid and remote employees at organizations that have adopted AI. He also pointed to fewer workers reporting clear expectations or feeling that someone at work cares about them, saying AI adoption may be moving faster than communication and managerial support.

A low-hire, low-fire labor market can offer job security while limiting employees’ options, said Cory Stahle, senior economist at Indeed. Workers have less ability to use an outside offer to negotiate a raise, even as some feel their wages are not keeping pace with rising prices. The quits rate, a measure often used to gauge workers’ confidence in finding another job, reached 2.1% in September. That was above the previous 12-month average of about 2%, but below levels during the Great Resignation.

Hiring was also subdued. The hires rate rose for a second straight month to 3.4% in September, but remained comparable to the early 2010s. Glassdoor chief economist Daniel Zhao said workers may be staying in jobs that no longer suit them because they are struggling to find alternatives. Soft hiring also weakens workers’ leverage with current employers, he said, leaving some without a way to address frustration through a move or promotion.

In a New York Fed survey of consumers, 42.1% said they were happy with their promotion prospects in July. That was slightly higher than in March but still low in the series dating back to March 2014. Zhao said workers can prepare for future opportunities even while the market is weak. If hiring picks up, he said, pent-up frustration could quickly turn into people leaving their jobs en masse.