Business & Finance
Workers demand record-high minimum pay to switch jobs, New York Fed data shows
Employed workers are seeking higher pay to offset risks from labor market weakness and AI, despite slowing overall wage growth.
The short version
- The average minimum salary required by workers to accept a new job reached a record $88,387 in July 2026, up more than $10,000 from March 2025.
- Economists attribute the higher wage demands to increased risk aversion among employed workers concerned about economic instability and workplace AI integration.
- The trend creates a divergence in the labor market, as employed job switchers command higher wage premiums while laid-off job seekers often accept pay cuts.
Key facts
- Data from the Federal Reserve Bank of New York shows the average reservation wage reached a series high of $88,387 in July 2026.[Business Insider]
- The minimum wage acceptable to job seekers rose by more than $10,000 compared to March 2025.[Business Insider]
- A Glassdoor analysis revealed that employee review mentions of AI grew by 240% from May 2025 to May 2026, accompanied by increasingly negative sentiment.[Business Insider]
- Navy Federal Credit Union chief economist Heather Long noted that overall U.S. wage gains have hit their lowest levels in five years amidst weak hiring and rising long-term unemployment.[Business Insider]
What remains uncertain
- Whether job seekers' elevated wage expectations will be realized across the board remains uncertain, as economists note that laid-off workers are frequently forced to accept reduced pay.[Business Insider]
Sources
- Workers want more money than ever to risk taking a new jobBusiness Insider metered