fbpx
Climate crisis and migration: Greta Thunberg supports International Organization for Migration (IOM) over ‘life and death’ issueRead more United Nations (UN) Convenes Lake Chad Countries, Amid Growing Regional CrisisRead more 11 Disruptive Startups Selected for Cohort 3 of the Africa Startup Initiative Program (ASIP) Accelerator Program powered by Startupbootcamp AfricaRead more Africa Data Centres breaks ground on new Sameer facility in NairobiRead more Coffee with a human face: A union that improves livelihoods for Ugandan farmersRead more Trends Predicted to drive the retail industry in 2023Read more Vantage Capital exits Pétro IvoireRead more Afrobarometer charts path for Round 10 surveysRead more Unified communication and collaboration trends for 2023 (By David Meintjes)Read more 2023 starts with BIG IMPACT on Bizcommunity!Read more

US wage expectations jump to record in November: New York Fed

show caption
AFP Photo
Print Friendly and PDF

Dec 21, 2022 - 07:59 AM

ISTANBUL (AA) – American workers’ job expectations jumped to a record high in November, as the US labor market is still hot and job seekers are trying to catch up with inflation, according to a survey Tuesday.

“The average reservation wage, which is the lowest wage respondents in the survey would be willing to accept for a new job, increased from $72,873 in July to $73,667 in November — the highest reading of the series.”

The increase was most pronounced for respondents younger than age 45, the Federal Reserve Bank of New York said in its labor market survey.

The average expected annual salary for job offers in the next four months increased from $60,310 in July to $61,187 in November, which is also a new high.

“The proportion of individuals who reported searching for a job in the past four weeks decreased to 18.8 percent from 24.7 percent in July 2022,” it added.

The Fed is trying to see wage growth decline to levels compatible with its 2% inflation target in its fight against inflation which is still above 7%, but the labor market remains too hot.

With the coronavirus pandemic causing labor shortages during the shutdown, after the economy reopened, the number of available jobs has been well above the number of unemployed workers seeking jobs in the US, which benefits workers with more open positions who can demand higher wages from competing employers.

At the same time, however, workers are struggling with inflation, since real wages adjusted for inflation declined as prices for goods and services skyrocketed; thus, new job applicants are asking for higher salaries to see their wages outpace inflation to protect their purchasing power.

US job openings stood at 10.3 million in October, while the number of unemployed workers remained steady at around 6 million in October and November.

MAORANDCITIES.COM uses both Facebook and Disqus comment systems to make it easier for you to contribute. We encourage all readers to share their views on our articles and blog posts. All comments should be relevant to the topic. By posting, you agree to our Privacy Policy. We are committed to maintaining a lively but civil forum for discussion, so we ask you to avoid personal attacks, name-calling, foul language or other inappropriate behavior. Please keep your comments relevant and respectful. By leaving the ‘Post to Facebook’ box selected – when using Facebook comment system – your comment will be published to your Facebook profile in addition to the space below. If you encounter a comment that is abusive, click the “X” in the upper right corner of the Facebook comment box to report spam or abuse. You can also email us.