Average US worker won’t take new job for less than $74K as salary demands hit new record: Fed survey
The average reservation wage increased from $72,873 to $73,667 in November, according to the New York Federal Reserve Bank
US workers' salary expectations hit record high
Dan Roccato, a finance professor at the University of San Diego, argues not enough Americans are working after a recent Federal Reserve survey showed the average worker won't accept less than $73,600.
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.
Average Americans won't accept new jobs for less than $74,000, according to a new study. (iStock / iStock)
"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.
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"[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.
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Tony Robbins, a personal development expert and best-selling author, bolstered Roccato's argument that the state of the U.S. labor market is "nothing like anything we've seen before." Robbins argued that the historic increase in reservation wages and influx of decidedly unemployed Americans may be because young adults are "missing a compelling future."
"There are 7 million men, as you mentioned, that are at home not working. And they're from, literally 18 years old to 48 years old. It's nothing like anything we've ever seen before. And I don't think it's that people are just lazy. They're missing a compelling future," Robbins said Thursday on "Fox & Friends."
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"There's a scarcity of jobs because so many people have dropped out of the job market," Robbins concluded. "It's not because there are so many excess jobs. Excess jobs are because people just aren't working."