Tight Labor Market Driving Wage Growth Recovery
The October jobs report highlighted that monthly wage growth was up 3.1 percent over last year, the fastest rate of growth since 2009.
CBS Moneywatch reports that economists are pointing to the fact that there have been more job openings than active job seekers since April.
At least in the short term, that trend should continue. PNC Bank predicts wage growth to average 3.3 percent next year, bringing it on par with 2007. Given that the number of job openings around the U.S. has exceeded the number of job-seekers since March, it’s likely businesses will have to try work harder to attract employees, said PNC Senior Economist Bill Adams.
These experts say that employers trying to compete for and retain talent in this tight job market are focusing on compensation as a means to attract and keep workers.
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The information included in this blog post originally appeared in articles from CBS MoneyWatch on November 2, 2018, written by Irina Ivanova.
