Dear Savvy,

With the economy the way it is, what's the average pay cut people are being forced to take after their position is eliminated and they need a job? And what is the best way to handle an employer asking what salary you are looking for in this kind of economy?

See my answer when you .

There aren't any statistics showing how much less workers are making now that unemployment has been on the upswing for some time, but it's clear that workers are making less in general. Some experts have even advised that an employee should take a voluntary pay cut [1] if she's about to be given an official pink slip. The logic behind that idea is that the job market is so tough you'll have to take a pay cut anyway, and once things turn around you'll be a prime candidate for a raise.

Young workers are being hit by the downturn because more experienced out-of-work candidates are taking the jobs normally filled by young job hunters. Because most companies are running with leaner workforces, meaning less jobs are available, and the candidate pool is overflowing, taking a pay cut from your old paycheck might be necessary to be competitive.

Your answer to employers asking for salary requirements should be similar to what you would have said in a stronger economy. As I've mentioned before [2], there are a couple of ways to approach the salary question. You could respond by saying something along the lines of, "my salary is negotiable considering other benefits and what your firm thinks is a reasonable start," or mention a salary range that leaves plenty of room for negotiation. Know what you are worth going in to the conversation, but keep in mind that a little flexibility will get you a long way in this economy.

Source [3]