Report: 80% Say Salary Isn’t Keeping Up With Inflation
Economic pressures are intensifying, and as the rate of inflation continues to grow, so do fears of a recession, and job seekers and professionals are feeling the impact. From the career decisions they make to financial health to job security, the workforce is concerned.
To gain insight into how these concerns are impacting job seekers and working professionals, Remote.co’s Work & Financial Wellness Report surveyed over 1,100 professionals around the world from October 13, 2022, to October 30, 2022.
Inflation and Financial Impacts
Inflation will undoubtedly have financial implications for working professionals. According to Remote.co’s report, 80% of respondents stated that their current salary isn’t keeping up with inflation, and 92% reported that recession concerns have impacted their career and financial choices.
Furthermore, 90% of those surveyed specifically stated that they “need to work,” meaning greater financial challenges while navigating careers in an uncertain economy. This has forced many people to explore their choices. These include:
- Looking for a higher-paying job (47%)
- Following a stricter budget (45%)
- Taking a side job or starting to freelance (31%)
- Putting money toward savings (23%)
Career Confidence and Job Security
As inflation continues to rock the economy and fears of a recession grow, career confidence and job security have been impacted. Two-thirds of survey respondents communicated that they are “extremely concerned” (32%) or “somewhat concerned” (31%) about their job security, with only 20% “slightly concerned” and 17% “not concerned at all.”
This has led many professionals to seek different career opportunities. In fact, 50% of respondents are actively trying to change careers, while another 21% are considering a career change. Additionally, 12% of respondents have already successfully changed careers, and 3% tried but it didn’t work out. That leaves only 15% of professionals having not considered a career change.
Job Prospects and Remote Work Availability
Although a high number of professionals are looking to make a career change (or have done so already), 65% are only “somewhat confident” or “not at all confident” in their ability to find a job. The overall breakdown looks like this:
- Somewhat confident (50%)
- Extremely confident (35%)
- Not confident at all (15%)
Despite this low confidence in finding a job, 63% of those surveyed would “absolutely” look for a new job if they couldn’t continue to work remotely. The contrast between low confidence in job searching and high willingness to leave a current job for remote options signals the importance of work flexibility in the workforce—namely remote work options. This is in line with the top factors professionals state they use to evaluate job opportunities:
- Remote work options (84%)
- Salary (81%)
- Work-life balance (79%)
- Work schedule (56%)
- Meaningful work (50%)
- Company culture (42%)
- Skills training and education options (40%)
- Career progression (40%)
- Vacation time (38%)
- Company reputation (38%)
Job Searching and Economic Instability
For professionals looking to find a new job in an unstable economy, there are ways to improve the chance of success.
Setting clear and intentional goals can help to keep a job search moving forward, especially in an uncertain market. Utilize daily, weekly, and monthly goals to stay organized and on track. Tangible goals can also help to keep job seekers motivated.
Expand Job Options
From looking for fully remote jobs to opening a wider job market to exploring new industries and positions, expanding job options can open up new opportunities. Job seekers can also explore part-time jobs, freelance contracts, or temporary roles, as well as get creative with how they market themselves and connect with companies.
As the market produces fewer opportunities, the competition increases. This equates to longer hiring times. It may take job seekers longer than usual to make it through the hiring process and land the job. To increase the chance of landing a job, applicants need to be good candidates for the role and make themselves stand out.
Follow Industry Trends
Layoffs and furloughs are not uncommon during a recession. However, some industries continue to grow. Stay ahead of the curve by staying in the know. Reading up on industry trends and news will help job seekers better assess, pivot, and target their search.
Although uncertainty is top of mind, job seekers can find success by planning ahead, making strategic career decisions, and dedicating themselves to their search.
If you’re looking to find success with companies that support remote work, check out the latest job listings!
Demographic breakdown of the 1,143 respondents: Gender: women (67%), men (31%), prefer not to identify (2%), prefer to self-describe (1%); Residence: U.S. (49%), Canada (3%), outside U.S. or Canada (48%); Generation: Gen Z (10%), millennial/Gen Y (40%), Gen X (34%), baby boomer (15%), silent generation (less than 1%); Education: less than a high school degree (less than 1%), high school degree or equivalent (8%), some college but no degree (16%), associate’s degree (7%), bachelor’s degree (44%), graduate degree (25%); Career level: entry-level (15%), experienced (53%), manager (17%), senior-level manager (8%), executive (5%); 33% had children 18 or younger living at home with them.
By Jessica Howington | Categories: Remote Management
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