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Investing.com -- The Federal Reserve Bank of New York’s Survey of Consumer Expectations revealed a change in Americans’ perspective on labor markets in March. Respondents indicated a decrease in the wage they would require to consider a new job. The so-called reservation wage fell to $74,236 last month, a significant drop from the series high of $82,135, reported in November’s data. The survey identified men and workers over the age of 45 as the main contributors to this lowered wage expectation.
This shift in attitude towards lower pay for new jobs occurs amidst a discernible shift in consumer sentiment, as reported in several surveys since the beginning of the Trump administration. Consumers have expressed growing concerns about future prospects and imminent inflation as President Donald Trump instigated a global trade war while simultaneously working to reduce the federal government.
The economy’s future has become a topic of debate among economists, with many suggesting a high probability of a recession. Federal Reserve officials have also predicted an increase in inflation and unemployment, coupled with a significant slowdown in growth, as a result of the president’s actions.
The New York Fed survey also reported a decrease in respondents’ satisfaction with job pay, benefits, and promotion opportunities in March. The bank highlighted that happiness with wage compensation was at its lowest level since November 2021.
Additionally, households in March reduced their expectations from November regarding the probability of receiving at least one job offer in the next four months. Respondents also lowered their expectations of working into their later years.
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