CNBC has an article stating that $80,000 is the new starting salary. Here’s a quote:
According to the latest New York Federal Reserve employment survey released Monday, the average “reservation wage,” or the minimum acceptable salary offer to switch jobs, rose to $78,645 during the second quarter of 2023.
Source: CNBC.com
If true, it doesn’t surprise us because every day 10,000 or so baby boomers retire from the workforce and leave a gaping labor hole that we’ve been writing about for some time now. We noted that 132,000 people were added to Social Security in July and that number continues to grow.
In related news, American Airlines pilot scored a 46% raise over 4 years but get an immediate 21% pay bump this year. In Inflation Down But Not Out – Raises Galore, we wrote about how United Airline pilots scored a 40% raise over four years.
It’s a great time to be a pilot but there are and will continue to be shortages of labor everywhere so we expect inflation to continue unabated.
How to profit from the labor shortage? In What’s Happening With Hourly Wages? T-Rex Will Eat First we noted how large deep pocket corporations that have ample cash flow and cash reserves would hire the best people and everyone else would get the leftover crumbs.
In terms of the airlines, United and American are two of the largest “T-Rex” predators so we expect smaller airlines to struggle to keep pilots and thus ultimately potentially lose revenue and have their share price drop offering potential profit opportunities.
We continue to research along these lines so stay tuned, stay profitable and stay solvent…