Companies are cutting salaries for new hires as workers' pay expectations hit record highs

Job-hopping isn’t paying what it used to. During the heyday of the “great resignation,” workers could expect to see a 20% pay bump from changing jobs. Now, as the job market cools and companies become more cautious with hiring, the big signing bonuses and high salaries new hires once enjoyed are dwindling.Data from payroll provider Gusto shows that wages for new hires are 5% lower than they were for new recruits in the same roles in July 2022, with tech and administrative roles seeing some of the sharpest declines. Nearly half of the 2,000 employers surveyed by ZipRecruiter in July said they had reduced pay for recent job openings.As businesses cut new hires’ salaries, however, jobseekers’ wage expectations have hit record highs, according to a Federal Reserve Bank of New York survey released Monday.Job seekers’ average “reservation wage,” or the lowest pay they’d be willing to take to switch jobs, climbed to $78,645 in July 2023, an 8% increase from just a year ago and the highest number in a data series that began in 2014, CNBC reports.Matt Dalrymple has applied for over 50 sales jobs in New Jersey and New York since his previous employer, Yellow, filed for bankruptcy and laid
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