Workers’ profits are slowing. Here’s what you can expect
According to jobs platform Indeed, which has created a new index based on salaries for jobs advertised through its website, US wage growth is on track to return to pre-pandemic levels by the second half of next year .
Wages by that measure rose 6.5% yoy in November, after peaking at around 9% in March this year, the scale shows. The slowdown is broad-based, with more than four out of five employment categories showing lower wage growth rates than six months ago.
“At its current trajectory, announced wage growth would return to its pre-pandemic pace of 3-4% by the second half of 2023,” the researchers wrote.
The Indeed tracker focuses on the wages and salaries published in job postings and not on the actual money paid to employees. That could make it a leading indicator of broader trends in wage growth, Indeed says.
The slowdown on this new measure contrasts with findings from the Labor Department’s most recent jobs report, which showed that average hourly earnings in November rose unexpectedly by the most since January.
The Federal Reserve says it is watching wage trends closely out of concern that a wage-price spiral could fuel inflation even further as companies pay their workers more and then charge their customers more.
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