Cost of living, job stability, and AI risks are driving employed workers to seek new jobs: UH Survey

FILE - A job seeker waits to talk to a recruiter at a job fair (AP Photo/Marta Lavandier) (Marta Lavandier, Copyright 2025 The Associated Press. All Rights Reserved.)

HOUSTON – Houston has long been known for its thriving labor market, but a recent survey shows why even full-time workers are looking to upgrade.

RELATED: New data shows the US job market was much weaker than thought in 2024, and this year as well

Researchers at the University of Houston’s Hobby School of Public Affairs have noted that the job search among already employed workers is becoming increasingly widespread.

READ THE FULL SURVEY HERE:

According to the U.S. Bureau of Labor Statistics, the unemployment rate in the Houston metro area is about 4.5%. Based on survey responses, participants sought better opportunities, such as improved pay, greater predictability, benefits, or career advancement prospects.

“Together, ages 18–49 account for about four in five employed seekers (18–34: 37.3%; 35–49: 40.5%), compared with 20.8% for ages 50–64 and 1.4% for 65+,“ the survey explained. ”Within each age group, most job seekers are employed full-time: 80.6% of seekers aged 18–34 and 83.2% of those 35–49 are employed full-time (the rest part-time). Older seekers look different: among ages 50–64, a larger minority is part-time (27.3%), and among 65+, the majority is part-time (70.4%)."

Here are some of the key takeaways from the survey:

1. Working while looking for jobs is widespread: About one-third of householders are currently seeking employment; roughly three-quarters of job seekers are already employed, and mostly prime-age workers.

2. Cost of living is main economic concern–varies by race/ethnicity: The high cost of living is one of the top economic challenges in Houston: 87.8% of Hispanics, 85.9% of Blacks, 82.4% of Whites, and 69.2% of Others.

3. Employer layoffs track search patterns: Seekers are more than twice as likely to report layoffs at their employer (19% vs. 9%), while non-seekers are likelier to report hiring without layoffs in their current jobs (36% vs. 25%); “both” and “neither” are similar across groups (26–30%).

4. AI as a task-level risk: Almost half (48%) say AI could replace some or all of their activities in their own jobs.

5. Education and AI exposure: “Yes, completely” falls from 21% for respondents HS or less, to 8% among those with BA+; “Yes, partially” rises to 39% for BA+; combined “yes” is highest for HS or less (53%).

But it’s more than just looking to level up in the career field. People have bills to pay, and living costs have not gotten any cheaper.

“The motivations are clear: rising cost-of-living is the dominant concern across households, especially among Black and Hispanic residents,” the survey noted. “On the demand side, workplaces show a mix of expansion, steady state, and churn; exposure to layoffs or mixed signals is strongly associated with active job search, while straightforward hiring correlates with staying put.”

SEE ALSO: Fewer Americans file for jobless benefits last week despite signs of a slowing labor market

Naturally, the growing use of artificial intelligence has only exacerbated the issue. But the survey does share tips on how employers can keep their workers, while employees can feel less anxious about AI coming for their jobs.

“The evidence points to a labor market where people are working, watching, and willing to move when the match is better,” the survey concluded. “Policy that mitigates the impact of rising costs of living and speeds skill adaptation will turn today’s ‘working while looking’ into tomorrow’s upward mobility.”


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