If you want to hire someone new, you have to show them the money.
Workers say they want more money than ever for a new job. This is evident from the latest data from the Federal Reserve Bank of New York the reservation wage – the average lowest wage a respondent would be willing to accept for a new job – reached an all-time high in July 2026. Workers say their asking price is now $88,387, more than $10,000 more than in March 2025.
It’s a grim figure in a labor market showed signs of weakness. Why do workers demand more in a market that wants to offer them less? The sharply rising reservation wage shows how strong this is employees can cling with their current role and how risk-averse they have become.
The demands for a higher compensation package are more in line with the hiring climate for those who are already gainfully employed and dipping their toes in the job search. During the day the great resignationin a tighter labor market after the post-pandemic reopening, Job hopping was lucrative and proven way to advance on the career and income ladder. Waves of layoffs and job cuts have made the decision to jump ship more charged. In a more uncertain labor market, the costs of an exit increase.
“It’s a relatively weak market. It’s harder to come up with an offer,” said Chris Martin, senior economist at Glassdoor. “And so the amount that I need to be paid or that I expect from a new role is higher than it would otherwise be.”
There is also the harbinger of AI. How companies use or push AI is increasingly on employees’ radar. An analysis by Martin for Glassdoor shows that mentions of AI in user reviews of companies increased 240% between May 2025 and May 2026, and those mentions are becoming increasingly negative. Moving to a new job now is more complicated than signing an offer letter; it means betting that that role and that company won’t be shaken too much by AI.
“AI certainly has something to do with our labor market expectations,” says Martin. “So if we need to be more compensated for risk, it’s partly because we’re not sure how AI is going to change the job market. If I have a reasonably good job right now, I might want to stay and wait, rather than mix things up.”
However, finding a job is still not easy
In a weak labor market, expecting a big pay increase can seem like a big ask. And for some, it is: despite the results of the NY Fed survey, workers who are actually looking for a job have indicated that they are willing accept a pay cut just to get hired after you’re fired.
That means those reporting higher reservation wages could face disappointment.
“What this indicates about the economy is that workers and job seekers know their value and believe inflation will remain high. That said, while this is what workers want, they’re not necessarily getting it,” said Heather Long, chief economist at Navy Federal Credit Union. “Wage increases are at their lowest level in five years, hiring is weak and the number of long-term unemployed is growing.”
Sustaining higher wages seems to be working, as the supply wage is followed by the New York Federal Reserve – which looks at pay proposals for those who have received job offers – has increased over the past year. As Nicole Bachaud, an economist at ZipRecruiter, notes, the wage premium for switching jobs has increased.
“For candidates fortunate enough to be searching from the comfort of an existing position, an offer that lags behind in terms of salary simply won’t justify the jump,” Bachaud said.
Are you looking for a higher job offer or are you afraid to leave your current position? Contact this reporter at jkaplan@businessinsider.com to share your story.
