New York Fed Survey Finds Worker Pay Demands Hit Record High
Per CNBC
A New York Fed Survey found out that the pay demands of wokers reached a new high. This increase was the norm for the majority of respondents under 45 years old.
The New York Fed released survey data showing that the lowest average wage American workers are willing to accept for new work has increased to $73,667 in November from just $72,873 in July. This new level breached its previous record of $73,283 in March 2021.
The increase comes as most Americans are also experiencing higher expenses due to the costs of goods increasing. In November, the prices of groceries increased by 12% year-over-year, per CNN.
The price of flour alone has increased by 24.9%, with bread increasing by 15.7%. Out of the different grocery items that shot up in price, eggs were the ones that skyrocketed the most, growing a massive 49.1%.
Coffee prices also rose by 14.6%. In March this year, the National Coffee Association said that 66% of Americans drink coffee daily.
It was noted that the core reasons why the prices of goods have increased include supply chain complications, extreme weather, crop and livestock loss due to diseases, and the war in Ukraine. This is on top of the US government increasing interest rate to help place food prices under control.
Despite inflation decreasing, employee expectations remain high due to the loss of purchasing power as the price of goods skyrockets. Because of this, some companies are offering creative ways to attract new workers despite high pay expectations.
One way that some companies are doing this is by offering one-time bonuses, which have started to become a common practice over the years. Jerome Powell, Fed Chairman, described the labor market as strong, saying wages were "very high."
Powell: “We do see a very, very strong labor market, one where we haven’t seen much softening, where job growth is very high, where wages are very high. So that part of it, which is the biggest part, is likely to take a substantial period to get down,”
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