Fed survey: US workers anticipate lower wages for job offers
Expectations for job offers and higher salaries fall.
The latest national survey data reveals workers across the United States are anticipating lower annual salaries in their future jobs and are less confident about receiving potential employment offers.
For the first time, the Federal Reserve Bank of New York released its Survey of Consumer Expectations (SCE) Labor Market Survey July 2017, which provides information on individuals’ experiences and expectations.
Survey data found the average expected likelihood of receiving at least one job offer in the next four months declined to 22% in July, down from 22.5% in March and 24.9% in November 2016. The drop was largely attributed to male workers, for whom the average likelihood declined from 24.1% in March to 21.4% in July.
The average expected annual salary of job offers in the next four months declined to its lowest level in a year, slipping from $54,590 in March to just $50,790 in July.
In addition, the average reservation wage – the lowest salary respondents would be willing to accept for a new job – declined from $59,660 in March to $57,960 in July. This is the lowest the reservation wage has been in more than two years. The series had been rising since early 2015 but began declining from November 2016.
Although the average reservation wage fell for each demographic, the drop was most notable among older (aged 45+) and higher-income earning (household income greater than US$60,000) respondents.
However, it’s not all bad news. The average expected likelihood of working beyond the age of 62 declined from 52.8% in March to 52.3% in July, the lowest reading since the series began. And while the average expected likelihood of working beyond 67 ticked up slightly (0.4%) in July, it’s still below the 2015/16 average of 36.2%.
The SCE Labor Market Survey has been running since March 2014 but has been made public now because the module has gathered and recorded a sufficient amount of historical data to reveal observable trends.