The minimum salary for Americans to take a job is more than $78,000 — an 8 percent increase in one year
- New research from the New York Federal Reserve shows that most Americans are unwilling to take on a new job that offers less than $78,000 a year
- The figure is a record high and is up $6,000 since July 2022
- Currently, the average full-time offer for a new job in the US is $69,475
Average Americans are now asking nearly $80,000 as their starting salary for their new job, according to a new survey, as inflation continues to constrain consumers’ spending power.
The “reservation wage” — calculated by the New York Federal Reserve’s Unemployment Survey — is now $78,645, up more than $6,000 from 2022.
The sharp increase is nearly 8 percent more than last year and a whopping $18,000 above the minimum acceptable salary of $60,200 in 2018.
Experts say inflation, which has also reached an all-time high and has pushed up the prices of many essential goods and services, could be a factor.
The average American earns just under $60,000.
Research shows that Americans are not interested in taking on a new job unless they are offered nearly $80,000 a year
Overall, however, the probability of changing jobs fell from 11 percent in 2022 to just 10.6 percent. Expectations of being offered a new job also fell from 2022 onwards
The data was released by the New York Federal Reserve on Monday and offers an interesting outlook on the state of the labor market.
According to the figures, employees willing to join a new company are aiming for a minimum salary of $78,645.
In July 2022, this value was only $72,873, a difference of $5,772.
That number represented another jump, as the “reservation wage” was $69,000 in 2021.
In the last three years, the minimum wage level has risen by more than 22 percent.
Previously, the minimum wage had slowly increased at $64,200 in 2020, $62,200 in 2019, and $60,200 in 2018.
The new number released on Monday also marks an all-time high since the Fed began publishing numbers in 2014.
Despite the sharp increase in the reservation wage, the average expected probability of being unemployed also rose to 3.9 percent.
This number represents the highest reading since March 2020, at the start of the COVID-19 pandemic.
Overall, the probability of changing jobs fell from 11 percent in 2022 to just 10.6 percent. Expectations of being offered a new job also dropped from 2022 onwards.
According to the figures, employees willing to join a new company are aiming for a minimum salary of $78,645
Consumer prices rose 4 percent year-on-year, compared to 4.9 percent in April
The figures are in line with inflation rates, which hit their highest level in 40 years in mid-2022.
The New York Fed’s numbers also align with the Atlanta Fed tracker, which forecasts job changers seeking a 7 percent pay rise.
The overall rate of expected increases from 2022 to 2023 was 6 percent.
Currently, US inflation has slowed to an annual rate of 4 percent, the lowest rate of price increases since March 2021, when inflation was 2.6 percent.
The annual inflation rate of 4 percent is well below the peak of 9.1 percent last June and the 4.9 percent rise in April.