NY Fed: Americans want $80K/year before taking new job

The base salary level which American workers demand before accepting⁤ a new job rose ‌to a ‍new​ high this year, due to persistent inflation.

The New York Federal Reserve reported⁤ in its July employment survey ​on Aug. 21, that the average “reservation wage,” or the minimum acceptable wage that⁣ workers will take to ⁣switch jobs, rose to $78,645 in the second quarter of ⁣2023.

This is a year over year increase of about 8 percent and is the ​largest spike on record going back to early 2014.

Since the pandemic‍ hit in 2023, the average minimum acceptable wage level⁣ has risen ⁢more than 22 percent, which is‍ significant since wages increasingly are a major factor in inflation.

High Prices Impacting Wage Demands

Since March‌ 2022, the ‌central bank ⁢has raised interest rates to ⁢between 5.25 and 5.5 percent—the highest level in more than 22 years—to curb inflation.

Despite ⁤overall inflation falling ⁢to⁢ 3.2 ⁢percent ⁣last month, from a high of ⁣9.1 percent in June 2022, households nationwide are still struggling⁢ with high⁢ prices and rising borrowing rates.

Other ⁤factors, such‌ as​ rise in the price of food, housing, and gas, continue to keep the ⁣price of goods well above the Federal Reserve’s target⁢ rate of 2 percent.

U.S. consumers are increasingly also turning to credit cards and remaining⁤ pandemic‌ savings for basic spending, due to high prices.