American workers are losing their passion for work. A tough job market is making it harder to leave.

• Gallup survey results showed US employee engagement was the lowest since 2011.
• Employees are also feeling frustrated because it remains tough to get a new job.
• If the job market improves, pent-up frustrations could lead to a big wave of resignations.

Gallup found, based on a survey of adults, that employee engagement, defined as “the involvement and enthusiasm of employees in their work and workplace,” has dipped to the lowest level since 2011. Engagement steadily rose during the 2010s, peaked in 2020, and dropped to 29% this past third quarter.

“At the same time, fewer employees report clear expectations or feel that someone at work cares about them,” he said. “The pattern suggests that AI adoption may be outpacing the communication and managerial support needed to make it effective.”

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Data elsewhere points to the difficulties of being a worker, especially if you want to get ahead in your career. Cory Stahle, senior economist at Indeed, told Business Insider that the low-hire, low-fire job market has consequences for people who want to switch jobs or get a raise, as employees aren't able to use offers elsewhere as leverage to push for a pay increase. 

“Obviously the low-fire means job security, but at the same time, if you have a secure job, but you feel like your wage is getting eroded and not keeping up the way that prices are increasing, that doesn’t feel good,” he said.

The quits rate can indicate confidence in getting a job, with a higher rate of workers leaving their current gigs implying feeling good about what’s available. The rate ticked up to 2.1% in September, above the previous 12-month average of about 2% but still lower than the Great Resignation a few years back.

Daniel Zhao, chief economist at Glassdoor, told Business Insider that soft hiring affects both unemployed and employed people because those with jobs face fewer opportunities to move up the career ladder or to have leverage over their current employer.

“If you can’t credibly quit and find a better job, then there’s no pressure on your current employer to give you a raise or a promotion,” Zhao said. “That means that workers are stuck in their current situations and they don’t have an outlet for their frustration.”

The hires rate was 3.4% in September, up for the second straight month, but still comparable to the early 2010s. Zhao said workers may be sitting in jobs that no longer fit them because they are struggling to find a new role, and thus are feeling pent-up frustration.

“Naturally, people outgrow jobs, and in a healthy job market, when you outgrew one job, you would move on to the next one,” he said. “But instead, right now we’re seeing that workers are stuck in jobs that are no longer a fit for them.”

The New York Fed’s survey of consumers showed the share of people who are happy with promotion prospects was 42.1% as of July, a slight uptick from March’s share but still low in the series dating back to March 2014.

“Even if the current job market is not a great time to find a new job, you can still set yourself up to be ready in the future,” Zhao said. “If 2027 is a better job market and there are more opportunities available, then you want to make sure that you are in a position to ride that wave.”

“If the job market does heat up, then that pent-up frustration, that desire for green pastures, is going to very quickly evolve into employee attrition, and it is going to result in people heading for the doors en masse,” Zhao said.

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