Real Wages Rose 1.2%
Nominal pay looks healthy at 3.7%. Strip out inflation and add back the extra hours, and workers are running faster to stay in place.
3 min read
Nominal pay looks healthy at 3.7%. Strip out inflation and add back the extra hours, and workers are running faster to stay in place.
The government shed 327,000 positions since October 2024. That workforce doesn't disappear, it floods into private labor markets, and your hiring strategy probably hasn't adjusted for it.
Overall prices are moving closer to the Fed's target, but shelter costs, which directly affect compensation decisions, remain elevated at 3.0% annually.
Every sector is hunting for AI talent, but the jobs might not exist by the time candidates apply.