To start a new job, US workers need at least $76,000

According to a study by the Federal Reserve Bank of New York, employers in the United States may end up having to pay nearly $76,000 to bring a new worker on board in a tight labor market. 

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Based on the latest survey of consumer expectations conducted by the New York Federal Reserve, a worker's so-called reservation wage - or the wages they would accept if they were taking a new job - increased to $75,811 a year in March from $65,349 a year in November, according to the bank's latest survey. 

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As part of its efforts to reduce inflation to below 5% without sparking a recession, the Fed is striving to keep wages in check. It was good news for the central bank earlier this month, when the number of positions available in the United States fell below 10 million for the first time since 2021 for the first time in many years. 

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I am open to working for no less than $76,000 per year

It does show however, that taming expectations for rising wages and prices and keeping them at an affordable level is a difficult task.

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Men are particularly highly motivated by the prospect of earning top dollar. They expect a reservation wage of $88,900 in March, up $3,200 from November, according to the survey. Meanwhile, women reported that they would consider a new job for $63,100, which is up $1,400 from November.

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It has also been reported that the gap between the people who have and who do not hold college degrees has widened significantly recently. It is estimated that the reservation wage for people with a minimum level of education from the beginning of the pandemic to March 2022 increased significantly from $48,800 to $62,100, but since then, it has decreased to $59,700, a slight decrease from the previous year.

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At the same time, the average reservation wage continues to rise as the number of people with college degrees continues to rise, as their reserve wage is now $97,300 a year, a significant increase over $81,800 just a year ago.