What Works for Workers?

Workers and job seekers are critical stakeholders in the economy, and their perspectives and voices on the labor market—regarding opportunities with employment—influence their economic mobility. Greater understanding of their experiences gives a broader picture of economic conditions and supports the Federal Reserve’s ability to achieve its mandate of maximum or full employment.

A recently released report, “Worker Voices: Shifting Perspectives and Expectations on Employment,” highlights the experiences of job seekers and workers in lower-wage roles as they navigated the labor market at the onset of the COVID-19 pandemic and through recovery.

As the labor market rebounded from pandemic-era lockdowns and the loss of 20 million jobs, the “Worker Voices” report, based on discussions from May through September 2022, provides a snapshot of what workers were seeking in employment. It also can help with ideas on how employers, policymakers and workforce organizations might work together. Worker voice is a critical part of promoting “equitable and inclusive worker success strategies,” according to the National Fund for Workforce Solutions.

Providing Opportunities for Workers to Share Their Experiences

In June 2022, the St. Louis Fed hosted a focus group session for the Federal Reserve’s Worker Voices project that led to the findings within the report. Excerpts are from the July 2022 summary memo, prepared by planning and consulting firm Public Works, regarding the Worker Voices project focus group session. Key themes the participants expressed were that the pandemic was a universally challenging time and that they appreciated the opportunity to share their experiences with one another. In addition, participants hoped to learn of job opportunities or better understand the steps necessary to access a better-paying or more engaging job.

From the focus groups to the report, we noticed workers and job seekers looking for opportunities to provide input beyond employee satisfaction surveys. It’s courageous of the workers to share experiences when it could have effects on their jobs, and it’s a core element of worker voice. Worker voice is “a whole-of-workplace approach in which frontline employees influence their workplace and their experiences at work,” according to the National Fund for Workforce Solutions.

Shift in Priorities around Work and Family

Workers in low-wage roles and nondegreed job seekers noted a shift in their priorities when it comes to family and work. The report found that the pandemic enabled conditions that allowed workers to spend more time with their families.

In the Eighth Federal Reserve District,The Eighth District includes Arkansas, eastern Missouri, southern Illinois, southern Indiana, western Kentucky, western Tennessee and northern Mississippi. some workers framed their appreciation for this quality time distinctly according to personal circumstances. For example, some participants acknowledged that the opportunity arose with a shift to remote work and perhaps fewer social activities; others presented the time as a meaningful unseen benefit despite their struggles to maintain stable income during the pandemic.

“Worker Voice” participants also discussed “job stability, agency,Agency is a core element of worker voice. As defined by the National Fund for Workforce Solutions, agency describes two-way, transparent communication whereby workers are stakeholders, and “their input is valued and yields policy and practice changes to create equitable opportunities for all workers to thrive.” dignity, livable wages proportional to their job responsibilities, and flexibility as aspects of what now they expect in a good job,” the report said.

There are myriad reasons for this shift in priorities for low-wage workers and nondegreed job seekers, especially from those most vulnerable in the economy who are “more sensitive to macroeconomic slowdowns and downturns,” as an August 2022 blog post stated.

For example, women, and especially women of color, were affected most by COVID‑19 disruptions in the labor market due to occupational segregation in jobs that required high contact with the public. Additionally, Black women, Hispanic women, and Asian Americans and Pacific Islanders (both men and women) faced stronger headwinds, in that they were more likely to be in the hardest-hit sector, leisure and hospitality, making less in those roles, according to the Economic Policy Institute.  

The good news is more employers are offering greater flexibility; wages are increasing in some sectors due to a tight labor market and a high inflationary period; and there are more opportunities for remote work. Employers also said they were “shifting practices to attract talent and widen the hiring pool,” the Worker Voices report said, such as eliminating structural barriers. For example, the report noted companies are reducing degree requirements on jobs; are being flexible on background checks, so as not to exclude justice-impacted individuals; and are increasing wages for the lowest-paid roles.

Skill Development, Training and Aspirations of Self-Employment

The report highlights how workers’ experiences during the pandemic affected their approach to career development, including pursuing skill-development training and entrepreneurship.

Some workers described their motivation for enrolling in school or a training program as self-preservation and a means to remain employable and financially stable as the labor market continues to evolve.

A St. Louis focus group participant, who at the onset of the pandemic worked as a bartender, enrolled in training and, as of the June 22 discussion, was earning a higher income working as a caregiver. She noted that she will continue to “add value to [herself]” to avoid a repetition of her experience with work during the pandemic.

Overall, focus group participants shared their hopes of starting their own businesses. While some respondents pursued additional endeavors to gain autonomy, agency and flexibility, others took on more work to supplement their income to cover growing expenses.

For example, in the Eighth District, one participant who worked in an administrative support role expressed frustration over what she once viewed as a reliable income that no longer covered her financial needs amid inflation. She said she took on a part-time role to offset rising costs, particularly around housing.

The implications for understanding worker voice are significant. “These shifts in preferences raise questions about what is needed to attract and retain talent,” the report said. Deepening our understanding of workers’ experiences and needs, particularly those of workers in low-wage jobs and nondegreed job seekers, provides an opportunity to better understand labor market trends, both in the short and long terms.

Notes

1. Excerpts are from the July 2022 summary memo, prepared by planning and consulting firm Public Works, regarding the Worker Voices project focus group session.
2. The Eighth District includes Arkansas, eastern Missouri, southern Illinois, southern Indiana, western Kentucky, western Tennessee and northern Mississippi.
3. Agency is a core element of worker voice. As defined by the National Fund for Workforce Solutions, agency describes two-way, transparent communication whereby workers are stakeholders, and “their input is valued and yields policy and practice changes to create equitable opportunities for all workers to thrive.”