US Reservation Wage Hits Series High of $88,387

The Federal Reserve Bank of New York reported that the reservation wage—the minimum pay workers are willing to accept for a new job—reached a series high of $88,387 in July 2026. This figure marks an increase of more than $10,000 since March 2025.

Economists attribute the rise to increased risk aversion among employees. Workers are less likely to leave current positions during a period of labor market weakness and growing uncertainty over how artificial intelligence will affect job security. This has created a rising wage premium for those already employed, who require higher pay to justify the risk of switching roles.

A disconnect has emerged between these expectations and market reality. While the reservation wage has climbed, actual wage gains have hit a five-year low and the number of long-term unemployed individuals is growing. Some job seekers facing layoffs have expressed a willingness to accept pay cuts to secure employment, contrasting with the demands of those currently employed.