If you’re looking to hire a new employee, you should know that what employers are offering has risen dramatically in the past year. But what employees want has also gone up. That’s according to the Federal Reserve Bank of New York’s Center for Microeconomic Data July 2023 Survey of Consumer Expectations (via Reuters). The report parses respondents’ thoughts and expectations on inflation, household finances, and the labor market.
Regarding the labor market, the report found that both the salary being offered to employees to switch jobs and the salary employees say they expect have risen dramatically in the past year. Specifically, it found that:
- In July 2023, the average salary offered for a full-time job was $69,475.
- That’s a jump of $8,711 versus the average salary offered for a full-time job just a year before in July 2022. That salary was $60,764.
But the report also found that neither of those salaries matches the salaries respondents say they now would expect in order to switch jobs to a new employer. The survey found that:
- In July 2023, respondents said the lowest salary they’d accept to switch jobs would be $78,645.
- That threshold is $5,772 higher than what respondents said they would accept a year earlier in July 2022. That salary was $72,873.
In short, inflation hasn’t only affected the prices of products on the shelves. As costs continue to rise for everyday people, those same people expect their salaries to rise as well. And while their salary expectations don’t match what employers are now offering on average, employers are paying significantly more than they were just a year ago to acquire new employees.
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