In the United States, the minimum acceptable figure for Americans to consider changing jobs has reached a new record high of US$81,822 in March, according to data released by the New York Federal Reserve. This represents a significant increase of more than US$8,400 compared to expectations registered in November.
Late last year, the average minimum wage that Americans were willing to accept in order to switch jobs was $73,391. The Federal Reserve noted a constant upward trend in these considerations, especially among men, individuals aged 45 and above, and those with household incomes exceeding $60,000.
Despite a slight decline in inflation levels, the rising cost of living – particularly in terms of high food and housing prices – has compelled workers to seek higher salaries to maintain financial stability. The labor market in the US is currently experiencing a shortage of workers, with more job offers available than there are individuals to fill them. Data from the Bureau of Labor Statistics shows that from May 2021 to December 2023, job openings consistently outnumbered unemployed individuals, with 0.7 unemployed persons per job offer in December 2023.
By January 2024, there were approximately 6.12 million unemployed individuals in the country, accounting for 3.7% of the workforce. Workers who had either temporarily or permanently lost their jobs made up 49% of this group, while 38% were entering or reentering the workforce, and 13% had voluntarily left their jobs.
Employers, however, have not yielded to the increasing demands for higher wages by potential employees. The New York Federal Reserve found that average starting salaries offered by employers in March were actually lower than those offered in November, with an average of US$73,668 compared to US$79,160 four months prior.
Additionally, the percentage of individuals actively seeking work in the last month rose to 25.1% in March, up from 23.1% in November 2023. Despite this increase, the percentage of job seekers who reported receiving one or more job offers slightly decreased to 18.5% from 20.4% in November.
Furthermore, data from the New York Federal Reserve shows a decrease in the average expected probability of individuals working beyond the ages of 62 and 67, reaching new lows in March. These trends reflect the ongoing dynamics within the US labor market as workers and employers navigate the challenges of inflation and a shortage of skilled workers.