Record High Wage Expectations: American Workers Demand $80,000 a Year for New Jobs
The average "reservation wage," or minimum acceptable salary offer to switch jobs, in the US reached a record high of $78,645 during Q2 2023, an 8% increase from the previous year and the highest level since 2014. Rising wages have been recognized as a driving force in inflation, and the data suggests that inflation is still present in the labor market. Employers have been trying to keep up with wage demands, with the average full-time offer rising 14% to $69,475. The tight labor market raises the likelihood of the Federal Reserve keeping interest rates higher for longer. Job seekers and job openings have declined, while expectations of switching jobs and being offered a new job have also decreased.
