The amount of money most workers want now to accept a job reached a record high this year, a sign that inflation is alive and well at least in the labor market.
According to the latest New York Federal Reserve employment survey released Monday, the average “reservation wage,” or the minimum acceptable salary offer to switch jobs, rose to $78,645 during the second quarter of 2023.
That’s an increase of about 8% from just a year ago and is the highest level ever in a data series that goes back to the beginning of 2014. Over the past three years, which entails the Covid era, the level has risen more than 22%. The number is significant in that wages increasingly have been recognized as a driving force in inflation. While goods prices have abated since pushing overall inflation to its highest level in more than 40 years in mid-2022, other factors continue to keep it well above the Fed’s targeted rate of 2%.
The New York Fed data is consistent with an Atlanta Fed tracker, which shows wages overall rising at a 6% annual rate but job switchers seeing 7% gains.
Employers have been trying to keep pace with the wage demands, pushing the average full-time offer up to $69,475, a 14% surge in the past year. The actual expected annual salary rose to $67,416, a gain of more than $7,000 from a year ago and also a new high.
Though there was a gap between the wage workers wanted and what was offered, satisfaction with compensation and upward mobility increased across the board.
With markets on edge over what the Fed’s next policy step will be, more signs of a tight labor market raise the likelihood that policymakers will keep interest rates higher for longer. At their July meeting, officials noted that wages “were still rising at rates above levels assessed to be consistent with the sustained achievement” of the 2% inflation goal, minutes from the meeting said.
Monday’s survey results also showed some other mixed patterns in the labor market.
Job seekers, or those who have looked for work in the previous four weeks, declined to 19.4% from 24.7% a year ago. That came as job openings fell by 738,000 to 9.58 million, according to the Bureau of Labor Statistics. The likelihood of switching jobs fell, dropping to 10.6% from 11% a year ago, while expectations of being offered a new job also declined, to 18.7% from 21.1%.
Median rent right now is $2k. Rule of thumb is 1/3 or less of income spent on housing. So that’s $6k a month. With comes out to 72k a year, pretty close.
All these articles act like workers have become so uppity and demanding but all they want is to live reasonably.
72k per year… before tax. I make $85k per year in Colorado, but only take home ~61k (~$2550 per pay check, 24 paychecks per year)
All of our issues right now circle back to housing prices.
Not really, groceries are expensive af too
Every industry is causing inflation via greed rn
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Considering that Elon musk has made $208 billion dollars in the last 7 years that might have something to do with it.
That’s enough money to give every single adult 18 years of age or older in America $1,000 and he would still have at least $40 billion left over, not to mention the 11 billion dollars he started with.
Haven’t read the article but the snippet says it’s the “amount to get someone to switch jobs.” I’m assuming this only applies to a small segment of the population but this news outlet is writing it as if McDonalds employees are demanding $80k salaries.
Yes, or say if workers keep demanding, inflation will rise as if we’re not asking for more literally just trying to keep up. Between rent, insurance, transportation, and groceries, we went from saving a ton every month and are now paycheck to paycheck.
My husband asked for 75 recently at an interview and was scoffed at and offered 60. We can’t budget enough to survive on that in our area. We want to be able to go to the doctor once in a while.
$2k a month?
Here I am charging $675 a month. Damn! I should raise my rent. I’m kidding. I’m able to cover the house bills. No reason to raise the rent. But damn! $2 k wow!
If you actually are a landowner, I would be careful saying that on lemmy. Lots of communists around these parts
What’s old is new again. New red scare, same as the old red scare.
Fear mongering about an other you don’t understand is as American as apple pie. 😑
Or just use it as block bait, when they rage at you, block block block
Capitalists believe they can own some land.
Communists believe they already own all of it.