New York Workers Adjust Pay Expectations as Economic Worries Loom

News Summary

In New York City, workers are reassessing their salary expectations amid economic uncertainties. A recent study shows a significant decrease in the average reservation wage and concerns about job security, with many fearing a rise in unemployment rates. This shift is particularly notable among older workers, indicating a broader trend impacting the city’s workforce as fears of downturns grow.

New York Workers Adjust Pay Expectations as Economic Worries Loom

In the bustling streets of New York City, a noticeable trend is making waves among workers—people are reassessing what they expect to earn in their next job. A recent study from the Federal Reserve Bank of New York has revealed that many American workers are lowering their salary expectations, and the figures are telling quite a story.

Salary Slump: What’s the New Normal?

The Survey of Consumer Expectations from the New York Fed shows that the reservation wage—the minimum salary workers hope to receive for a new job—has dipped significantly. As of March 2025, the average reservation wage dropped to $74,236, down from a peak of $82,135 in November 2024. Can you believe it? That was the highest level recorded since the survey began!

This historical shift is especially noticeable among men and those aged 45 and older, who seem to be recalibrating their expectations in response to the current economic climate.

Job Offers: A Dwindling Hopes?

14.9% of survey respondents now believe they will snag at least one job offer in the upcoming four months. That’s a drop from the 16.2% who felt confident about finding work back in November. As the job market shifts, it seems like many are left scratching their heads.

Rising Worries Over Unemployment

44% of those surveyed expect the unemployment rate to skyrocket within the next year, an increase of 4.6 percentage points since last November. This level of concern hasn’t been seen since April 2020, and it stretches across demographic groups—regardless of age, education, or income. 15.7% of people feeling their employment might be at risk this year. That’s also the highest it’s been since March 2024, especially concerning for those earning less than $50,000 annually.

Retirement: A Distant Dream?

47.3% of workers now anticipate working beyond the age of 62, a noticeable decrease from 50.6% back in November. When looking beyond age 67, that expectation slips further to 31.6%, which is down from 34%. It seems that dreams of working less and enjoying life in retirement are feeling hazy for many.

Economic Concerns and Inflation

Recession Worries on the Rise

37%, a significant increase from 25%. These numbers are sobering, contributing to a sense of trepidation among workers as they navigate the increasingly unpredictable job market.

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