Workers feel confident enough to ask for record-high wages in the aftermath of the pandemic.
Key Details
- A new survey from the Federal Reserve Bank of New York finds that the mean wage demand for average job seekers is currently $78,645.
- This marks a notable increase from the 2022 mean reservation wage of $72,873, up from $52,725 in 2014.
- Male workers expect roughly $91,000 compared to female workers expecting $66,100, Axios notes.
- The study also found that average wage offers have increased to $69,475.
- The proportion of workers seeking a new job is currently 19.4%, down from 24.7% in July, while the average likelihood of becoming unemployed is 3.9%, the highest rating since the beginning of the lockdowns.
Why It’s News
The COVID-19 pandemic has completely changed the working world in the past three years, with employees being given new opportunities and options for work that have been well received.
Remote work became popular, leaving corporations struggling to enforce return-to-office mandates. This empowerment of employees has led to the “Great Resignation,” “Quiet Quitting,” and “LazyGirlJob” phenomena, with young employees finding less meaning in their jobs and more in other areas of life.
The current economy faces many severe challenges, including high inflation, high interest rates, a tight real estate market, a tightening job market, and recession fears. However, the economy remains resilient despite these pressures, leading many analysts to predict that the economy will have a “soft landing” in the near future.
While employees are currently less likely to engage in “quiet quitting” or sudden job switching for better benefits, they remain very confident in their ability to demand high wages, signaling the continued confidence and resilience of the average worker.
As we previously reported, Americans’ perceptions of the economy do not match the situation on the ground for most respondents, generally reporting that their personal finances are strong while economic fears are prevalent.
