Merissa Piazza from the Cleveland Federal Reserve’s research team participated with colleagues from the Atlanta and Chicago Feds (all of whom are members of the 12 Feds in the Fed Communities collaboration) to write a report issued this summer: “When Every Dollar Counts: Inside the Economic Struggles of Workers who Earn Low To Moderate Incomes”.
This study is worth reading cover to cover, and as usual, the Fed does an outstanding job of designing a comprehensive study. This year’s update, after the inaugural study in 2022, was based on qualitative data from 63 people from across the U.S. gathered via 11 focus groups. All participants had an income of $85,00 or less, an income threshold representing 50% of U.S. households. (Please note the average household income for Cuyahoga County is significantly less, ~$64,450.)
My biggest takeaway from the research was the change in perspectives from 2022. While only 3 years ago, 2022 reflected much of the power workers felt post-COVID as part of the Great Resignation, when people changed jobs in search of improved job quality (such as better shift times, flexibility in the workplace, PTO, and benefits). These characteristics played a large role in people deciding whether to leave or accept employment or not. Now, with the changing economy, inflation for several years, and the rise of AI, workers are feeling differently; while these quality characteristics are important, the number one issue on workers’ minds is wages, with a strong appreciation for stability.
Here are the 4 summary points from the research (with thanks and credit to the Fed Communities website):
Thank you to the Fed Communities team and Cleveland’s own Merissa Piazza for conducting this rare, comprehensive view of workers and what they need and want in employment.