Quarter of U.S. Workers Want Change by 2023, Keeping Churn Alive

(Bloomberg) -- A quarter of U.S. workers are considering a job change or retirement in the next 12 to 18 months, pointing to further churn in the labor market, according to a survey by Principal Financial Group Inc.

The share rises to 34% when accounting for respondents on the fence in their current roles, the survey showed. Employers shared the sentiment, with 81% concerned about strong competition for candidates.

“The survey shows a clear picture of a labor market still in flux in large part due to shifting habits and preferences brought on by the pandemic,” said Sri Reddy, senior vice president of Retirement and Income Solutions at Principal.

U.S. workers are capitalizing on an extreme labor shortage to negotiate better terms and conditions, either offered by employers desperate for talent or striking for it themselves. The latest jobs report showed the participation rate barely budged in October as millions of Americans remain on the sidelines.

Among the reasons to change jobs are the stalwarts of seeking higher pay and a better career trajectory, but the pandemic has brought about new considerations. About a quarter want hybrid options, and retirement benefits are key for the 77% who say Covid-19 drove them to want to save more.

That’s especially true as inflation, supply chains and the continued impact of the pandemic weigh on retiree optimism and consumers’ economic outlook overall, Reddy said.

Principal conducted the quarterly survey in August and September. More than 1,800 U.S. residents and 205 plan sponsors who have at least one financial product or service with the company participated.

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