American workers are demanding almost $80,000 a year to take a new job

9/18/2023

American workers are demanding almost $80,000 a year to take a new job, per CNBC.

The desire for a higher salary when considering a job has reached an all-time high this year, indicating that inflation remains a prominent factor, especially within the job market.

According to the most recent employment survey by the New York Federal Reserve, released on Monday, the average "reservation wage" – the minimum salary deemed acceptable to switch jobs – surged to $78,645 during the second quarter of 2023. This marks an 8% increase compared to just one year ago and represents the highest level ever recorded since the data series began in early 2014. Over the past three years, encompassing the era of the Covid-19 pandemic, this figure has risen by more than 22%.

This statistic holds significance as wages have increasingly been identified as a significant contributor to inflation. While the prices of goods have moderated since propelling overall inflation to its highest point in over four decades in mid-2022, various factors persist in keeping inflation well above the Federal Reserve's targeted rate of 2%.