Americans Settle for Lower Pay and Roles: How Job Market Anxiety Reshapes Career Choices

A new report has revealed that Americans are increasingly willing to accept lower salaries and take jobs below their qualifications amid growing concern over the slowdown in the U.S. labor market.

According to a survey conducted by TopResume titled “Overqualified and Undervalued”, 70% of U.S. workers said they are ready to downgrade their job positions to keep their current employment. Meanwhile, 75% expressed willingness to take a pay cut for job security, with 34% of them saying they would accept a reduction exceeding 11% of their salaries.

The report attributes this shift to the instability of the labor market, which has entered a turbulent phase. Since the end of the post-pandemic hiring boom, job openings have gradually declined, layoffs have increased, and hiring has slowed across multiple sectors — pushing many to “cling to their jobs” out of fear of losing them.

Americans “Cling” to Jobs Amid Slowdown and Rising Job Insecurity

The survey, conducted in September among 600 American employees, found that 66% can be categorized as “job clingers” — those who remain in their positions mainly for financial necessity rather than career passion, afraid to risk changing jobs amid limited opportunities.

At the same time, nearly two-thirds (65%) of participants said they would accept jobs below their qualifications, while 26% admitted they already had to do so. Additionally, 16% reported they had taken pay cuts to remain employed. The report warns that this trend is causing “crowding” in mid-level and entry-level job markets, as highly experienced candidates compete for lower-tier roles amid limited chances for career advancement.

Professor Mikki Hebl, a psychology professor at Rice University specializing in workplace behavior, explained that this shift stems from a combination of economic and social factors. She noted, “The labor market hasn’t collapsed yet, but job creation has clearly slowed, unemployment has risen in some sectors, and concerns about inflation and AI’s impact on job stability are growing.” She added that many workers now prefer less stressful or remote jobs — even at lower pay.

In another analysis, Amanda Augustine, a career coach at TopResume, said accepting lower roles or salaries “may seem like a safe short-term choice but carries long-term risks,” warning that “working below one’s skill level can hinder career growth and weaken future negotiation power.”

Workers Seek Balance as Fed Warns of a “Less Dynamic” U.S. Job Market

Meanwhile, Jennifer Schielke, CEO of Summit Group Solutions, noted that some workers are voluntarily stepping down for psychological balance and mental health protection, explaining, “The global crises of the past five years have led many to reassess their professional and personal priorities.”

This shift comes as Federal Reserve Chair Jerome Powell acknowledged during a speech at the National Association for Business Economics that the U.S. labor market has become “less dynamic.” He explained that “hiring has slowed sharply, and the decline in labor force growth due to reduced immigration and participation is creating new pressures.” Powell noted that while official data has paused due to the government shutdown, available indicators suggest continued hiring weakness and heightened caution among both companies and workers.