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%.
You are really clueless here and making things much worse. MANY people stuck in a bad situation can feel quite alone. I often do after 10 years of being in near total isolation. It can be a good thing to hear, someone else say “you’re not crazy, you’re not alone, it really is this bad.” That can be a really helpful thing to hear. People have helped me by saying this. Attacking people when you have no clue what their experience is really like, and prompting a wave of negativity, that is depressing. I’m numb to the idea and just live day to day as best I can. I have no problem saying the system is shit. Everyone going through this should be saying the system is unsustainable suicidal shit. Otherwise no one really knows. Maybe there are a bunch of freeloaders on disability. I have heard this from a lot of people before I was disabled. I really don’t care any more. I went through 3 years of bullshit trying to get disability just to be denied and spent months suffering from the efforts to do that. I’m totally disenfranchised from the experience. I’ve already decided how this plays out. I’m not worried. I don’t care. It just is what it is, and I’m not afraid to say that. If there is something a person can change, by all means, do not make permanent solutions to temporary problems, but if there is not a way to change the situation, I support your choice to select whatever options you feel are best for you. I don’t judge anyone for these choices. I do not support anyone pushing their morals on others.
I am not pushing my morals on you, please do not make that mistake. Once again, I am sorry for the situation you are going through, I know I have said it many times but I really am being genuine, but there is a distinction between pushing morals and preventing needless destruction. Not everyone reacts to statements like that the same way. We have no idea how fragile the state that he is in. Most people do not even speak about it, I never told anyone about it until right when I was about to do it, and it was basically a manifesto telling this world how much I hated it and how everyone can go fuck themselves. Someone replied and I owe my life to them. I didn’t say people don’t feel alone, I said people are not alone. At my lowest point in life, I definitely felt alone, but I wasn’t, I understand what you meant.
I agree with a lot of what you said, just be more mindful. Like I said, I hate doing this because I know how you guys are feeling because I have also been there, but we all can strive to do better. Maybe I should have been more understanding of your situation, I am sorry if what I said seemed like an attack but your statement came off very blunt to me.
I am sorry for what I said and did, and I hope you can forgive me, I just didn’t want to see someone else hurt themselves. If you need someone to talk to then I am here for you as well. I will listen.