Luis Alvarez | Digital Vision | Getty Images
splash in pay, which was key feature of workforce 2021 market showed signs of disappears early this year like a business demand for workers softened a bit last years record levels.
Wage in in private sector grew by 5% in in first quarter of 2022 relatively year previously the same pace as fourth quarter of 2021, US Department of This was announced by the Labor Service on Friday.
That growth still quite strong compared to pre-pandemic levels of about 3%, according to Nick Bunker, the economic research director for North America at the Indeed Hiring Lab. But the data indicate growth may reach a plateau.
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“Wages don’t go up. rate they were for big chunks of last year” Bunker said.
“This is signal It is something of these benefits and bargaining power workers had because of extraordinary circumstances of last year not permanent,” he said. added. “They’re not solid parts of work market.”
Employers started bidding up wage in from the beginning of 2021 to compete for work. Businesses needed workers faster than individuals were joining the workforce and taking available jobs like the usa economy reopened more generally out of the doldrums of the pandemic.
The picture from work was quickly distorted in favor of employees: the number of vacancies has grown to record layoffs fell to historic lows, wages grew at the fastest pace. pace in years and workers voluntarily left their jobs in record level, tempted by better opportunities elsewhere.
Wage growth was most notable in traditionally low-paid service sectors such as leisure and hospitality (jobs in bars, restaurants and hotels, for example).
Vacancies and layoffs of their own free will are not far off record highs set at the end of 2021. However, like wage growth seems to have leveled off offering labor market cooled down like more Workers return to work and to the employer demand for labor is fading away. However, the trends are still profitable.
“This is a relative cooling, but moving from 105 degrees to 98 degrees,” Bunker said. “He’s still pretty warm.”
In the meantime, inflation has eaten away the increased wages of workers.
Less than half (45%) of workers saw their wages growth outpace inflation in March 2022, based on Indeed analysis released on Thursday. That share tends to steadily decrease from 58% in March 2021. (Acquisition power falls when inflation exceeds wages.)