In a survey published Monday by the Federal Reserve Bank of New York, he revealed that wage expectations of Americans have risen in recent months at record levels.
As employers continue to promote job openings, more Americans are looking for better income, for Julia Pollak, chief economist at the online job market ZipRecruiter, this behavior is a reflection of where the US economy is today.
In this sense, the analyst mentioned that “many workers feel that, although they have received these large nominal wage increases since the pandemic, their situation has not improved because their salaries have simply followed inflation and they have not increased at all in terms of productivity, and they expect wages to pick up,” he said.
According to data from the Federal Reserve, Americans expect about 8% more in wages than a year agothat is to say about $78,645 dollars, this represents the lowest salary that they would probably be willing to accept in a job offer.
According to Pollak, this wage expectation clearly explains why the United States is experiencing a summer of strikes and unions that pressure big business and companies for higher wages “wages follow inflation, and part of the reason workers expect higher wages is because prices have risen 17.5% since the pandemic”, indicated the specialist.
If it weren’t for the rise in inflation after the pandemic, prices would only have risen 7%, but since the inflation rate shot up to 9.1% in the middle of last year, raising the cost of basic necessities, services basic and rentals the economic imbalance has weighed on the pockets of the average American that struggles with high indebtedness and low purchasing power.
Although wages have increased after the pandemic, they are not enough to offset the high rate of inflation, despite all the maneuvers he has done on his part the formulators of the Federal Reserve with the high interest rates to control it and bring it to 2%.
It was in the month of May of this year that for the first time in two years, Americans’ real hourly earnings were adjusted for inflation, as well as in June when for the first time the weekly income also increased. However, it seems to be not enough for the average household.
Source: La Opinion