Will wages outpace inflation for long? It depends on the job
CNNWashington, DC CNN — Wages are now finally beating inflation, according to the latest quarterly data on wage growth. Workers who switched jobs are still raking in higher wages than those who choose to stay; and employees in industries struggling to hire, such as leisure and hospitality, are also enjoying fatter paychecks, economists said. “The folks who left one company and went to another are the ones who are still benefiting from wage growth,” said Morgan Llewellyn, chief data scientist at Jobvite. “And even if employers want to get back to normal and control wage growth, they just don’t have much choice but to raise wages to increase recruitment and retention.” Constrained labor supply might be a reason why employers are still having such a hard time hiring. “Wage growth has still been higher for job changers than job stayers and that suggests that there’s still a shortage of labor for some companies,” said Dawn Fay, operational president at staffing firm Robert Half.