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%.
“Goods prices have abated…” The fuck they have. Also stop blaming inflation on wage increase. Most of it was caused by opportunistic greed of those aforementioned ‘goods prices’.
My groceries for 3 people for one week was 250. That would have been 89 bucks before Covid.
Ah, a typo! They meant “good prices have abated”, never to be seen again. Ever.
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.
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.
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
Nice and plump, they should be taxed at a higher rate. Make Exxon repave the broken streets.
Stop saying this. That means jack shit since that will clearly go up with inflation.
Corporate profit margins are at record highs. This shows greed. They knew there was an expectation of higher inflation so took advantage of it by increasing prices even when their costs did not increase.
“That’s an increase of about 8% from last year.”
Or as I like to say 1% less than yearly inflation.
I just want to say, you’re not alone. Inflation is still charging ahead, groceries are expensive, daycare is expensive, and the news keeps saying it’s our fault. It’s not. You should get more than 28k. I don’t think anyone working full time should be below 50k plus benefits. If you are having a hard time making ends meet and feeling that pressure it changes how you see the world and how you see other people. It almost drove me mad.
I hope you find some support to get through the rough patch. Hang in there bro, we’re rooting for you too.
There’s no rough patch, man. This is it. This is the new reality.
The only thing stopping this train is outright revolt, and I don’t see that happening any time soon. Although, the more people get pushed to their limits, the more likely it becomes.
Seems like getting a different job would be a lot easier than starting a violent revolt.
Like, that’s $14 an hr. Any call center will hire you at more than that. If you just actually go to work every day and try even remotely, you’ll be a supervisor in 6 months. Most of them won’t even drug test you.
Or like, you know, vote for a higher min wage and encourage others to do that too.
Just seems like a solvable problem to me. Violence being an inevitable outcome seems like a big stretch
Please do not become a martyr, there are tons of people that do this every day and unfortunately due to our shitty planet, their cries for help are dampened even after their passing.
I know life seems like it may suck really bad, believe me, I’ve been there, several times. Just hang in there, there is always an opportunity out of this shithole.
Life isn’t about money either, I myself have spent most of my life in poverty having to fight for what I’ve had. Think about the possessions you’d leave behind that money cannot buy. Friends, family, pets, memories. You can’t take what you physically own with you, but you can’t take those things either.
If you need someone to talk to, I am here for you. If you are in distress, please PLEASE seek professional help. I and many others love you and are very proud of you, and even if we do not know you and have never met, we would feel deep regret and sorrow for your loss.
You do get to play a me up man ship.
Your unnecessary details indicate a deep bitterness with several facets.
Person you are responding to wants to die and this is what you feel is an appropriate response.
You spread your misery because you want the world to feel your pain. Karma is at play.
Why would you say this to someone contemplating suicide?
I am sorry for your situation, I truly am, but you don’t know what they are going through either. You did not do anything to help the situation, only exacerbate it. No shame.
Both these dudes are unwell, why are you expecting some sort of decorum from one of em?
