Latest Release: 2024 Q2The ZipRecruiter Survey of New Hires
The ZipRecruiter Survey of New Hires is a quarterly survey of U.S. residents who started their current jobs within the past six months. New hires are the leading edge of the labor market—the first to experience changes in the urgency and intensity with which employers are recruiting workers, and the terms of employment on offer. Indicators tracked in this survey—such as how long it took workers to find their jobs, and what share received signing bonuses or healthcare benefits upon hire—can help gauge the quantity and quality of jobs available in the U.S. economy.
Latest Release
Q2 2024
The latest findings from ZipRecruiter's Q2 2024 New Hires Survey paint a clear picture of a cooling labor market. Only 58% of workers increased their pay with a job switch, down from 70% previously. Recruitment efforts have also diminished, with just 30% of new hires being actively recruited, compared to 46% last quarter. The share of new hires negotiating their offers fell to 26% from 43%, while their share receiving signing bonuses nearly halved to 14%. Similarly, only 16% received a counter-offer from their prior employer, down from 24%. Job satisfaction has also taken a hit, with only 39% reporting they are “very satisfied” with their new job, a decline from 47%. These shifts underscore a significant reduction in workers’ leverage and confidence in the current job market.
Data Spotlight
⇩ 58%
Previous: 70%
increased their pay
⇩ 30%
Previous: 46%
got recruited
⇩ 16%
Previous: 24%
negotiated their offers
⇩ 26%
Previous: 43%
received a signing bonus
⇩ 14%
Previous: 23%
received a counter-offer from their prior employer
⇩ 39%
Previous: 47%
are “very satisfied” with their job
Highlights of the Q2 2024 Survey
Slower Hiring Environment Leads to Decline in Worker Bargaining Power
In recent months, job openings have fallen and the unemployment rate has ticked upwards. The slackening labor market has dented workers’ bargaining power, and their responses to a nationally representative quarterly survey conducted by ZipRecruiter highlight the shift.
In the second quarter of 2024, just 26% of recently hired workers said that they negotiated their offers, down from 43% the previous quarter. The steep decline confirms the findings of ZipRecruiter’s 2024 Q2 Job Seeker Confidence Survey that job seekers are feeling less confident about their ability to land better jobs, and more urgent to secure offers quickly.
New hires said they received an average of 2.3 offers before accepting their current job, down from 2.8 offers in Q1. Only 16% said they received a counter-offer from their prior employer when they announced their departure, down from 24% in Q1. In a market where fewer job seekers have outside offers or are able to secure counter-offers from their existing employers, job seekers are behaving as though they have less leverage.
Offers appear to reflect the fact that workers are in a weaker position than they were a mere quarter ago. Only 14% of new hires said they received a signing bonus upon hire, down from 23% in Q1, and only 58% of job switchers said they increased their pay, down from 70% in 2023 Q4 (the last time the survey included the question).
Consistently, the top reason new hires give for not having negotiated is fear of losing a job offer. That fear generally appears to be overblown, with very small shares of new hires or job seekers saying that they have had an offer rescinded. Although it remained small, that share ticked up in Q2, rising to 14% from 10% in 2023 Q4 (the last time the survey included the question) and 8% in Q3.
“More evidence from @ZipRecruiter that the U.S. job market is cooling off: In Q2 2024, only 26% of new hires negotiated their offers (down from 43% in Q1). Signing bonuses are also down to 14% from 23%. Job seekers are feeling the squeeze, with fewer offers and counter-offers, reflecting a decline in bargaining power.”
- Julia Pollak, ZipRecruiter Chief Economist
Election 2024: Workers Say Democrats Would Be Better for the Labor Market, But Are Less Likely to Win
As of 2024 Q2, 33% of recently hired workers said they identified as Democrats, 30% as independents, and 27% as Republicans. 10% said they identify as something else. Less than two-thirds (61%) of newly hired workers said that they are following the 2024 presidential election campaign somewhat closely (35%) or very closely (27%), with 18% saying that they are not following it at all.
When asked which party’s victory in the upcoming presidential election they thought would be best for the economy and labor market, the margin was narrower than the self-reported partisan split, with 44% saying the Democratic Party and 42% saying the Republican Party.
When asked which presidential candidate they thought was likely to win the election, 55% said Donald Trump and 45% said Joe Biden. (Note that the survey was in the field prior to President Joe Biden’s announcement that he would drop out of the race.) Among those who said Trump, 76% said that they believed his victory would improve the economy, with 45% predicting that it would improve significantly and 32% predicting that it would improve somewhat. Among those who said Biden, only 52% said that they believe his victory would improve the economy (15% significantly and 37% somewhat). The results suggest that perceptions of Biden’s handling of the economy could be a major political disadvantage.
Temporary/Seasonal Work
Among recently hired workers, 14% said they are in temporary or seasonal positions, and another 19% said they would be interested in finding a temporary or seasonal position. Most cited financial reasons for taking on temporary jobs, such as earning extra pocket money (59%), paying down debt (24%), offsetting the effect of inflation on their budgets (15%), or saving up for a specific purpose (15%). The leading non-financial reason cited was to gain work experience (26%). 60% of newly hired temporary/seasonal workers said they are not interested in turning their temporary jobs into permanent positions, whereas 40% said they are.
“Did you know? 40% of seasonal/temporary workers are eager for permanent roles! Smart companies can leverage this by tapping into this motivated pool of tested talent for long-term growth.”
- Marissa Morrison, ZipRecruiter Vice President, People
Methodology
The ZipRecruiter Survey of New Hires is a survey fielded to a nationally representative online panel administered by Qualtrics during the second month of every quarter. The sample consists of more than 1,500 adults who reside in the U.S., who are currently employed, and who began their current jobs within the past six months. It excludes self-employed workers.
The survey asks these recently hired workers detailed questions about the circumstances leading up to their employment, the hiring process, the job offer, and the working conditions in their new roles. Additional findings regarding the prevalence and distribution of particular job search experiences and working conditions across the cohort of recent hires, by age, gender, education, and industry, are available upon request. Email press@ziprecruiter.com for more survey data or to schedule an interview with the authors of this study.