New US Job Seekers Now Expect To Be Paid $79,000 — A New All-Time High

The expected annual salary for new jobs by American workers has hit nearly $79,000, the highest since March 2014, according to a recent survey.

What Happened: The New York Federal Reserve has disclosed that the lowest annual wage American workers would consider for a new job has been climbing, reaching $78,645. This figure has jumped from $72,873 in July 2022 and $62,194 in July 2019, pre-pandemic. The most significant surge was recorded among respondents over 45 years old, with men and women expecting average salaries of $91,048 and $66,068, respectively, as USA Today reported.

Federal Reserve Chairman Jerome Powell highlighted the crucial role of wage control in combating inflation, with a goal to reduce it to 2%. Despite the escalating salary expectations, a gap persists between the desired annual salary of $78,645 and the average pay of $69,475 received over the previous four months.

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The survey also found a decrease in job-seeking activity. The rate of job seekers in the past four weeks dropped to 19.4% from 24.7% a year ago, and the likelihood of job-switching also decreased to 10.6% from 11%. Meanwhile, the percentage of respondents expecting to be unemployed increased to 3.9% from 2.3% in July 2022, the highest since March 2020.

Why It Matters: The escalating salary expectations can be linked to the growing consensus among voters that the current federal minimum wage of $7.25 per hour is insufficient due to the rising cost of living, as revealed by a Data for Progress survey. The survey found that voters believe the average American should earn $26 per hour to meet basic needs comfortably.

This Month, Sen. Elizabeth Warren (D-Mass.) and Sen. Bernie Sanders (I-Vt.) advocated for raising the minimum wage to $17 an hour, emphasizing that corporate profits depend on workers. This call to action underscores the increasing importance placed on salary expectations by American workers, as highlighted by the New York Federal Reserve’s recent data.

Photo Courtesy: Shutterstock.com

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