Transitions into Unemployment Decline; Offer Wage Expectations and Job Transitions Pick Up
The July 2021 SCE Labor Market Survey
shows that transitions into unemployment dropped to 0.4 percent in July 2021 from 10.5 percent in July 2020. Employer-to-employer transitions, on the other hand, increased to 5.9 percent in July 2021 from 4.4 percent in July 2020. This increase was most pronounced for those with household incomes less than $60,000. Regarding expectations, the average expected likelihood of receiving at least one job offer in the next four months increased 2020 to 21.6 percent in July 2021 from 18.5 percent in July, remaining below pre-COVID levels. Conditional on receiving an offer, the average expected annual salary of job offers in the next four months increased to $57,207 from $54,646 in July 2020. The average reservation wage—the lowest wage respondents would be willing to accept for a new job—increased sharply to $68,954 in July 2021, from $64,226 in July 2020.
For more details: Press Release:
Labor Market Survey Shows Improvement in Expectations; Average Reservation Wage Increases Compared to a Year Ago