{"id":4276,"date":"2022-07-29T09:54:57","date_gmt":"2022-07-29T13:54:57","guid":{"rendered":"https:\/\/www.ziprecruiter.com\/blog\/?p=36854"},"modified":"2022-07-29T09:54:57","modified_gmt":"2022-07-29T13:54:57","slug":"wage-growth-hits-a-new-series-high","status":"publish","type":"post","link":"http:\/\/jerome1greene.x10host.com\/wp\/wage-growth-hits-a-new-series-high\/","title":{"rendered":"Wage Growth Hits a New Series High"},"content":{"rendered":"<p>Contrary to the wage numbers we got from the <a href=\"https:\/\/www.bls.gov\/news.release\/empsit.nr0.htm\">Jobs Report<\/a> for the last two months, today\u2019s <a href=\"https:\/\/www.bls.gov\/news.release\/eci.nr0.htm\">Employment Cost Index Report<\/a> shows no signs that nominal private-sector wage growth is slowing down. Accelerating wage growth accompanied by a decline in GDP for two consecutive quarters further complicates the Federal Reserve\u2019s fight against inflation.<\/p>\n<p>Here are key takeaways of today\u2019s report:<\/p>\n<ol>\n<li><strong>Private-sector wages and salaries grew 5.7% over the year, at a record-fast pace. <\/strong>Wage growth accelerated across the board, in almost every single industry and region. Paychecks grew at 5.3% for all civilian workers, and 5.7% for the private sector\u2014both are at record high levels.\n<ul>\n<li>We\u2019re seeing the fastest nominal wage growth, in both goods-producing (4.7%) and service-providing industries (5.9%), in series history.&nbsp;<\/li>\n<li>Paychecks in accommodation and food services grew at 8.5%, the fastest pace across all industries. With 8% fewer workers than it had in February 2020, the industry still has a huge jobs hole to fill and is struggling to recruit workers.&nbsp;&nbsp;<\/li>\n<li>Wage growth accelerated in nursing and residential care facilities (7.7% YoY). Nursing and residential care facilities are similarly lagging behind in the employment recovery and are providing services with 11% fewer employees than in February 2020. Since the industry still has a lot of hiring catch up to do, care facilities are hiring at a rapid pace and are offering above-average salary increases to recruit candidates in a tight market.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Inflation is eroding workers\u2019 purchasing power<\/strong>. <em>Real<\/em> wages are down 3.5% for civilian workers overall, and 3.1% for private-sector workers. Despite record-high nominal wage growth, inflation nearing double-digits keeps eating up workers&#8217; wage gains.<\/li>\n<\/ol>\n<div class=\"flourish-embed flourish-chart\" data-src=\"visualisation\/10769366?94099\"><script src=\"https:\/\/public.flourish.studio\/resources\/embed.js\"><\/script><\/div>\n<ol start=\"3\">\n<li><strong>Production costs are high in multiple other categories as well.<\/strong> The overall cost of labor to employers in the private sector grew at a record-high 5.5% in June over the year. But many other input prices\u2014such as energy costs\u2014are growing far more quickly (see <a href=\"https:\/\/www.bls.gov\/news.release\/ppi.t01.htm\">PPI<\/a> numbers for June). That said, since labor costs are the main cost for most firms, growing compensation costs present a serious challenge for many businesses, especially small businesses.&nbsp;<\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>Contrary to the wage numbers we got from the Jobs Report for the last two months, today\u2019s Employment Cost Index Report shows no signs that nominal private-sector wage growth is slowing down. Accelerating wage growth<\/p>\n","protected":false},"author":103,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[31],"tags":[],"class_list":["post-4276","post","type-post","status-publish","format-standard","hentry","category-job-market-insights"],"_links":{"self":[{"href":"http:\/\/jerome1greene.x10host.com\/wp\/wp-json\/wp\/v2\/posts\/4276","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/jerome1greene.x10host.com\/wp\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/jerome1greene.x10host.com\/wp\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/jerome1greene.x10host.com\/wp\/wp-json\/wp\/v2\/users\/103"}],"replies":[{"embeddable":true,"href":"http:\/\/jerome1greene.x10host.com\/wp\/wp-json\/wp\/v2\/comments?post=4276"}],"version-history":[{"count":1,"href":"http:\/\/jerome1greene.x10host.com\/wp\/wp-json\/wp\/v2\/posts\/4276\/revisions"}],"predecessor-version":[{"id":4277,"href":"http:\/\/jerome1greene.x10host.com\/wp\/wp-json\/wp\/v2\/posts\/4276\/revisions\/4277"}],"wp:attachment":[{"href":"http:\/\/jerome1greene.x10host.com\/wp\/wp-json\/wp\/v2\/media?parent=4276"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/jerome1greene.x10host.com\/wp\/wp-json\/wp\/v2\/categories?post=4276"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/jerome1greene.x10host.com\/wp\/wp-json\/wp\/v2\/tags?post=4276"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}