American job hunters set a new record for salary expectations.
The average reservation wage – the lowest wage respondents would be willing to accept for a new job – increased from $72,873 in July to $73,667 in November, according to a study conducted by the New York Federal Reserve Bank.
The increase was particularly prominent in respondents under 45.
Dan Roccato, a finance professor at the University of San Diego, believes that inflation is the top reason for the revelation followed by young adults remaining at home.
“Many of our fellow workers are feeling pinched” from inflation, Roccato said on “Fox & Friends First,” adding that “48% of young adults are living with mom and dad.”
“That’s not good. We need to get them out working… America works when Americans work. And right now, not enough of us are out there working,” he stressed.
Roccato’s comments come as employers are still struggling to find workers even though salaries are higher. The survey found that 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. The decline was widespread across income, education, and age groups.
REPORT SHOWS AMERICANS FACE ‘MOST SEVERE’ IMPACT TO WAGES IN 25 YEARS
“[Employers are] paying more than they paid ever before. Wages are up, but they still can’t attract these workers. And a large part is because workers still aren’t feeling the pinch. In other words, they’ve got this inflation problem out there, but maybe they’re living with mom and dad. Maybe they’ve got some savings still from the pandemic, the generous benefits that we’ve had. So they’re still not ready to go out there and put food on the table no matter what,” Roccato explained.
“But at some point,” he added, “with the economy the way it is right now, some of those workers get drawn back in and accept those jobs. Accept reality, and accept those jobs.”
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