80 000 $ Minimum PAY—Expected Salary By Average American

It has been revealed in a recent survey conducted within the United States Federal Reserve Bank Of New York, that the minimum expected wages by an American has increased to 80000$. According to the survey data, the average reservation wage, which is considered as the minimum acceptable salary offer required for workers to switch careers, has increased to almost 79000$. These data are from consumer expectations data.

The survey further revealed that this increase of almost 8% from the same time last year when the average reservation wage was closer to 73000$.

This increase is more prevalent among workers who are 45 years of age.

With employees who processed college degrees their expected annual salaries were around 100 000$, to be exact 98600$. While among employees with no college degrees, expected annual salaries were well below 63 000$. Report claims this gap between college & non college employees is quite considerable compared with previous surveys. 

In the United States due to the very tight nature of the labor market it has allowed workers to quit their present job and to find a much better paying job, particularly where certain working hours can be adjusted depending on their needs and requirements. Additionally, the US Labor Department stated  that it has 9.6 million new job openings to be filled by the end of June for the year 2023. This stat implies that for every unemployed worker there is a 1.6 chance of retaining a new career.

According to a separate survey conducted by Federal Reserve Bank of Atlanta it has revealed that when workers switched their jobs they received almost a 7% annual wages hike. While for workers who hadn’t switched their jobs, they also have received  somewhere around 5.5% of annual salary hike.

But all reports claim the fundamental driving force behind rapid growth in wages is the inflation that has taken place for the past 2 years throughout the United States.

It has also been revealed that the Federal Reserve has repeatedly cautioned about the possibility of a wage price spiral, with risks of substantial pay increases according to Federal reserve Chairperson Jerome Powell.

Mr. Powell has commented that “I think many, analysts believe that it will be an important part of getting inflation down, especially in the non-housing sector, to getting wage inflation back to a level that is sustainable, that is consistent with 2% inflation,”

Additionally, according to reports a wage-price spiral occurs when prices continue to go higher and workers demand additional compensation in order to keep pace with inflation. That, in turn pushes the inflation even higher as companies look to offset the steeper labor cost.

However, according to July data there seems to be a considerable decline in new job openings being put on, in fact it is said to be the lowest number of new openings for the past 2 Years.