Here's How Much the Average American Worker Expects to Make in a New Job

The average salary demands of the American workforce are now higher than ever. And not surprisingly, the statistics are tied to inflation.

The New York Federal Reserve released its latest employment survey on Monday, which found that the average reservation wage, or the lowest wage Americans are willing to accept for a new job, is now $78,645, up from $72,873 in July 2022. That 8 percent increase marks the highest level recorded since tracking began in March 2014.

Respondents over the age of 45 likewise drove the biggest increase.

While those numbers don't necessarily reflect what workers will actually be offered, employers have been trying to keep up. The average full-time offer for salaried employees is now $69,475, a whopping 14 percent higher than the median offer of $60,764 from a year ago.

Although the expectations don't completely align with what employers are willing to pay, satisfaction with wage compensation, non-wage benefits, and promotion opportunities all increased by 3.0 percent, 1.7 percent, and 4.0 percent, respectively, from July 2022. Interestingly enough, satisfaction was highest for respondents with an annual household income of less than $60,000 per year.

This spike in U.S. salaries comes after inflation rose to the highest level in over 40 years in mid-2022. The Federal Reserve continues to struggle with keeping the consumer price index (CPI) at 2 percent. While a July CPI report showed that inflation rose less than anticipated at 3.2 percent and has come down significantly from its peak last year, it's still above the target.

In a cycle that economists refer to as the "wage-price spiral," wage increases drive inflation and vice versa. When companies pay employees more, they likewise raise prices to adjust for growing business expenses. In turn, employees expect higher wages to offset extra spending.

Fed. Chairman Jerome Powell has said that tamping down wage inflation was necessary in getting overall inflation down to 2 percent, but not in a way that dings the American workforce.

"Wages will continue to increase,” Powell said in a press conference back in June. "What we’re talking about is having wage increases still at a very strong level but at a level that’s consistent with 2 percent inflation over time."