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Powell’s Inflation Nightmare: Job Seekers, Including the Employed, Suddenly Expect Massively Higher Wages in Job Offers

August 22, 2023

by Wolf Richter Wolf Street

And the offered wages that job seekers actually received also spiked massively as employers comply with a new reality.

Wages of job offers received by job seekers, and expectations for wages by job seekers surged in July, in another sign that this inflation is making its imprint on the labor market, and it’s not backing off at all, on the contrary, and then the fretting starts that much higher wages will lead to still much higher inflation.

The wages that job seekers – not just the unemployed, but also the employed looking for another job – expect to get in their job offers spiked by $7,105, or by 11.8%, from a year ago to $67,400 on average, according to the New York Fed’s Survey of Consumer Expectations (SCE) this morning. This portion of the SCE is conducted three times a year, in July, November, and March.