As we notice changes in the labor market from what it was two years ago, many key factors (unemployment rate, quite rates, and the ratio of job openings vs. unemployed workers) show that the market is returning to a similar comfortable temperature as pre-pandemic.
The latest data from the Indeed Wage Tracker shows that annual posted wage growth was 3.1% in June, the third consecutive month of growth at that level, and equal to the average posted wage growth rate for 2019 (this rate peaked at 9.3% in January 2022). With these rates growing at the same sustainable pace as pre-pandemic, the Indeed Wage Tracker is signaling the US labor market may be settling into a groove.
While unemployment rate is currently at a historically favorable level, June saw the third straight month of increasing unemployment. The Indeed Wage Tracker indicates that the labor market is stabilizing, with wage growth returning to pre-pandemic rates. For those worried about inflation, modest wage growth is reassuring and suggests that the labor market isn’t driving up inflation. However, it’s important to remember that wage growth often lags behind the strength of the labor market, as employers typically adjust wages after observing shifts in the ease of hiring or retaining employees.
Source: Hiring Lab
