The reservation wage, representing the minimum annual salary workers would accept for a new job, reached an all-time high of nearly $79,000 in July, based on the Federal Reserve Bank of New York’s recent Survey of Consumer Expectations.
Average reservation salary among American workers hits record high of nearly $79,000,
This marks an increase from around $72,900 in the prior year and $69,000 in July 2021. Notably, pay expectations among women in the workforce surged by 11%, outpacing the growth rate among men.
Despite this, a considerable gender gap remains, with men having an average reservation wage of roughly $91,000 compared to women whose average was $25,000 lower.
The survey also disclosed that workers holding a college degree anticipate an average annual income of $98,600 when considering new job opportunities, while those without a degree expect around $63,300.
In contrast, the U.S. median household income stood at $70,784 in 2021. Despite the robust job market seen in the addition of 187,000 jobs in the past month, there are indications of a potential labor market slowdown, with a decrease in the average anticipated likelihood of receiving multiple job offers.
The survey found that workers increasingly view earlier retirement as a feasible option, potentially impacting the available labor pool.
The anticipated likelihood of working beyond age 62 has declined to 47.7% from 48.8% in July 2022, suggesting that the pandemic may have influenced attitudes toward retirement and work.
