Wage Demands Reach an All-Time High in the United States

The amount of money most workers are requesting to accept a new job has reached a record high this year.

The New York Federal Reserve released a survey this week detailing the minimum acceptable salary offer to switch jobs. This amount has risen to $78, 645 during the second quarter of 2023 which is an 8% increase from just one year ago.

According to CNBC, “The number is significant in that wages increasingly have been recognized as a driving force in inflation. While goods prices have abated since pushing overall inflation to its highest level in more than 40 years in mid-2022, other factors continue to keep it well above the Fed’s targeted rate of 2%.”

Also, wage growth can fuel inflation. “If businesses’ expenses grow with higher wages, they’ll often raise prices to accommodate that. As prices rise, workers will demand higher wages to help them keep up spending. This cycle is what economists call the “wage-price spiral,” USA Today reported.

The New York Federal Reserve’s survey also found that the number of people seeking a job, job openings and the likelihood of switching jobs all fell from last year’s data.