Breitbart’s John Carney and economist Joe LaVogna react to Kudlow’s jobs report.
we wage growth New data from career site Indeed shows that it has slowed sharply over the past year and is returning to pre-pandemic levels.
A pay tracker based on the salaries of job ads posted on Indeed shows that salaries were up 3.3% in February compared to the same period a year ago. This is a notable decline compared to January 2022, when wages rose by about 9.3%, suggesting that employers are experiencing less competition for new hires.
“The pace of the slowdown is alarming,” wrote Nick Bunker, labor economist at Indeed. “Posted wage growth has fallen by almost 3 percentage points over the past year.”
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Elementary school educators gather to speak with prospective employees during a Prince George’s County School District hiring event at Henry A. Wise Middle School on Aug. 2, 2023, in Upper Marlboro, Maryland. ((Amanda Andrade-Rose/The Washington Post via Getty Images)/Getty Images)
The slowdown is widespread, but most pronounced in low-wage sectors. Posted salaries for this group fell from 12.5% at the beginning of 2022 to 3.4% in February.
“Wage growth remains above the pre-pandemic pace, given the significant increase in published wages in these sectors,” Bunker said. “It’s unclear how long this will last.”
In contrast, the wage growth rate for high-wage workers fell to 2.6% from a high of 8.2% in February. Year-over-year growth for middle-wage workers has fallen to 3.9% from a peak of 8.5%.
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The labor market has remained historically tight over the past year, contrary to economists’ predictions of an economic slowdown. Economists expect the labor market to continue slowing in the coming months as higher interest rates trickle through the economy.
Job seekers visit a booth during the Spring Job Fair on Friday, April 15, 2022, at the Las Vegas Convention Center. ((KM Cannon/Las Vegas Review Journal) / Getty Images)
of federal reserve The government has raised interest rates 11 times since March 2022 with the aim of curbing inflation and cooling the labor market. Policymakers have suggested that rapid wage growth, a product of a strong labor market, is contributing to the inflationary crisis that has ravaged the wallets of millions of Americans over the past few years.
There are increasing signs that the labor market is starting to weaken in the face of rising interest rates and stubborn inflation.
had. Significant wave of layoffs Since the beginning of the new year, the list has been growing longer by the day. Alphabet, Amazon, American Airlines, Citigroup, Snap, and UPS are among the major companies cutting jobs.
Still, job growth has proven surprisingly resilient.
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Employers added 275,000 jobs in February even as the unemployment rate rose to 3.9%, according to data released by the Labor Department in early March. While the report highlighted how the job market remains largely intact despite rising interest rates, it also reduced the likelihood of more aggressive rate cuts.
