What is the minimum wage you will accept for a new job? According to a recent survey by the Federal Reserve Bank of New York, Americans say their magic number is $73,000 a year.
Every four months, the Federal Reserve asks a nationally representative sample of approximately 1,300 Americans about their labor market experiences and expectations. The latest survey results for July 2022 show that workers’ average “reserved wage,” or expected minimum wage, has increased by 6% from a year earlier.
In the months since the pandemic first erupted in March 2020, Americans’ wage expectations have generally trended higher. The highest retained salary reported so far was $73,283 in March of this year.
Why American workers expect more money
There are several possible explanations for why American workers are expecting higher salaries from new employers these days. The labor market remains tight, with 528,000 new jobs added in July — meaning many workers have reason to be confident in their ability to negotiate higher wages.
Meanwhile, inflation is pushing up the cost of living: Last month, consumer prices were up 8.5% from a year earlier. Workers are eager to increase their earning power accordingly, and changing jobs is often the best way to get a big pay raise.
Federal Reserve survey data shows that many workers are indeed looking for new jobs: nearly 25% of respondents Those who said they had been looking for a new job in the past four weeks were the highest since March 2014 and up from 24 percent in July last year. The Fed noted that year-over-year growth was driven by those under 45 and those with a college degree. Note to potential employers: Be prepared to pay.
