Wages in the US are falling at a 'striking' pace, Indeed says
Breitbart's John Carney and economist Joe LaVorgna react to the employment statistics on 'Kudlow.'
U.S. wage growth has slowed sharply over the past year and is getting closer to returning to its pre-pandemic level, according to new data from career site Indeed.
The wage tracker – based on salaries for job advertisements listed on Indeed – showed that salaries were up 3.3% in February compared with the same time one year ago. That is a marked drop from January 2022, when wages were up about 9.3%, suggesting that employers are facing less competition for new hires.
«The pace of deceleration is striking,» wrote Indeed labor economist Nick Bunker. «Posted wage growth has fallen by almost 3 percentage points over the past year.»
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Elementary school educators gather to talk to prospective hires during a hiring event for Prince George's County school district hosted at Dr. Henry A. Wise Jr. High School in Upper Marlboro, Maryland, on Aug. 2, 2023. (Amanda Andrade-Rhoades/For The Washington Post via Getty Images / Getty Images)
While the deceleration is broad-based, it is most pronounced in low-wage sectors. Posted pay for that group tumbled to 3.4% in February from 12.5% at the start of 2022.
«Given the huge run-up in posted wages for those sectors, wage growth is still above its pre-pandemic pace,» Bunker said. «How long this will last is uncertain.»
By comparison, wage growth for high-wage employees dropped from a high of 8.2% to 2.6% in February. For middle-wage workers, year-over-year growth has fallen to 3.9% from a peak of 8.5%.
AMERICANS IN THESE STATES ARE GETTING A PAY RAISE THIS YEAR
The labor market has remained historically tight
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