The Blubber

Workers are increasingly concerned about job security as executives signal plans to replace them with AI, according to a survey by the Federal Reserve Bank of New York. However, despite this growing anxiety, job seekers are not lowering their salary expectations for new roles.

The NY Fed survey, conducted every four months among 1,000 people, revealed that the share of respondents fearing unemployment in the next four months has hit a record high. In the July survey, 4.4% of participants anticipated losing their jobs soon, a figure only matched once before, during the onset of the pandemic in March 2020.

This rise in job insecurity comes as workers face mounting threats from AI and economic uncertainty—a situation that Korn Ferry has described as a "perfect storm" for widespread unemployment. Last week, tech giant Cisco laid off thousands of employees while announcing increased investment in AI. Meanwhile, many employers are refraining from hiring or backfilling positions, waiting for economic conditions to improve.

A report from the Labor Department showed that the U.S. economy created 61,000 fewer jobs than expected last month.

Despite these fears, workers' salary expectations remain high. Job seekers now expect an average minimum salary of $81,147 to accept a new position—up nearly $20,000 since March 2020. The Fed's report also shows growing dissatisfaction with current wages, benefits, and promotion opportunities, particularly among women, individuals without a college degree, and those with household incomes under $60,000.

Even with concerns about job loss, the desire to switch jobs is stronger than during the Great Resignation. Nearly 30% of respondents reported job hunting in July, up from 19% in the same month last year. This is the highest rate since March 2014, when 32% of professionals were searching for new employment.

Additionally, the rate of those transitioning to new employers has reached a record 7.1%, surpassing the levels seen during the Great Resignation, when fewer than 5% of workers reported switching companies.