CHICAGO (NewsNation) — Fewer Americans are relocating to take new jobs amid a shift in U.S. work culture. Workers are less interested in moving for work opportunities due to the increase in hybrid and remote work, according to a report from Challenger, Gray & Christmas.
The number of job seekers relocating for jobs fell to the lowest level ever recorded by the firm in the first quarter of 2023. In Q1 2023, only 1.6% of job seekers moved for a new job, down from 4.6% in the same quarter last year, according to the recruiting firm’s data. The previous high for relocations was in Q4 2018, at 7.7%.
Experts have said that the coronavirus pandemic changed the way Americans approach work, but this trend predates the pandemic by at least five years.
There’s been a steady drop in the number of Americans willing to move for their job since 2017, with the proportion of jobseekers moving for work hitting record lows every year since 2019.
The percentage of Americans changing cities because of their employer has fallen since at least 1986 when nearly 42% of Americans relocated for a job.
But the pandemic recovery has sped things along, with more Americans aging out of the workforce, or choosing to retire rather than return to the office after the pandemic, workers have more leverage than they’ve had in generations.
“Employers are essentially taking whoever comes along and employees know that,” said Dr. William Lee, the chief economist at the Milken Institute.
But, he said it’s not just the shrinking workforce that’s empowering jobseekers to stay put.
“A lot of companies have now invested in technology and software to change the nature of jobs,” Lee said. “Workers who are very skilled in the new technology are able to essentially command whatever terms they want, including the cities in which they’re located.”
While these changes may make American workers more content, if not downright happier, with their jobs, Lee said we’re unlikely to see an economic benefit from this kind of change to America’s approach to work.
Lee also warns that entry-level, white-collar workers aren’t likely to capitalize from this shift.
Yet, the lack of relocation doesn’t mean employers are offering more remote work options, according to the firm. In a separate survey, the firm found that 39% of U.S. companies surveyed offer full remote work options, down from 73% who offered as much in Fall 2022.