US Workers Seeking Record Wages to Consider New Jobs, New York Fed Says

• The New York Fed reports a record high average reservation wage in March, indicating the lowest wage individuals are willing to accept for a new job, driven by factors such as gender, age, and education level.
• Inflation pressures and a tight labour market prompt workers to demand higher wages. However, despite these demands, employers are offering lower starting wages on average, indicating a discrepancy between worker expectations and employer offers.
• The report indicates declining satisfaction with both wage and non-wage compensation in March, while satisfaction with promotion opportunities remains steady. Worker satisfaction with compensation, both wage and non-wage, decreased in March, while satisfaction with promotion opportunities remains unchanged. This suggests a general dissatisfaction with compensation packages among workers.
• Ongoing inflation and a strong demand for workers have given employees more power to negotiate higher wages, contributing to the trend of rising reservation wages.
• The trend of rising wage demands has broader economic implications, prompting discussions about inflation, labour market dynamics, and policies related to wage-setting mechanisms. These discussions may influence future economic policies and decisions.

(Source: Reuters)