American workers want record wages to change jobs, NY Fed finds
DISTILL CEO Neely Tamminga discusses whether the Fed has been restrictive enough to rein in inflation on Making Money.
A new report from the New York Federal Reserve found that the lowest wage that American workers said they're willing to accept to take a new job reached a record high last month.
The so-called reservation wage was an average of $81,822 in March, a substantial increase from the $73,391 seen in the last report in November 2023, according to the New York Fed's regular Survey of Consumer Expectations.
The New York Fed said the rise was most pronounced for men, respondents aged 45 and under and those with a household income above $60,000.
It also found declining satisfaction with wage and non-wage compensation in March, which declined by 3.1 and 3.7 percentage points, respectively, while workers' satisfaction with promotion opportunities remained steady.
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American workers are seeking record wages to change jobs, new NY Fed data shows. (Eric Thayer/Bloomberg via Getty Images / Getty Images)
New York Fed data tracking reservation wage demands has been on a steady upward trend amid the inflationary pressures and labor market tightness that continue to impact the economy.
Despite the higher wages sought by workers, the New York Fed found that employers were offering lower starting wages than they have in recent months, with the average offer at $73,668 in March compared to $79,160 last November.
Expectations around the likelihood that a current employer will match an outside job offer fell to 24.8%, its lowest level since July 2021.
FED OFFICIALS WORRIED INFLATION PROGRESS IS STALLING, MEETING MINUTES SHOW
Over 25% of individuals
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