Why Employed Workers Keep Job-Hunting: Pay Gains in the US, Security Fears in Europe

A new ECB-Fed study finds that 13% of employed Europeans and 19% of employed Americans are actively looking for new jobs, but the reasons differ sharply across the Atlantic.

Using statistics from the European Central Bank and the U.S. Federal Reserve, analysts examined job-search behavior among employed people in the euro-area and the United States. They discovered that 13% of European workers and 19% of American workers continue to look for new employment while still holding a job. In the United States, the dominant motive is the pursuit of higher wages, a factor that triples the impact of job-search on pay improvement compared with fear of job loss.

In contrast, most European workers cite job-security concerns, especially in Spain, Germany, France, Italy, the Netherlands, Belgium, Austria, Finland and Ireland, with Greece and Portugal showing a more balanced mix. Those who search while employed are roughly six times more likely to switch jobs, and almost half of new hires were previously employed. The study further reveals that 50-60% of searchers keep looking for several months, and 40% remain active even after joining a new employer. Job-switching probabilities rise by 7.5 points in the United States and 5.3 points in Europe, varying by country.