US Wage Growth Moderates, But Still Outpaces Expectations
The Employment Cost Index, a measure of pay and benefits closely watched by Federal Reserve officials, grew at a moderate pace of 1.1% in the third quarter of 2023, slightly faster than expected. While this marks a deceleration from rapid gains in 2022, wage growth remains strong compared to pre-pandemic levels. The trend presents a challenge for the Federal Reserve as rapid wage gains can fuel inflation. However, economists expect the Fed to hold interest rates steady as they wait for the labor market to continue normalizing. The labor market's cool-down has been bumpy, with job gains slowing but remaining faster than expected. If pay growth continues to calm while job gains remain solid, it would suggest an improving supply of applicants and a slowly balancing labor market.
- A Key Measure of Wages Grew at a Moderate Pace This Summer The New York Times
- Workers Keep Getting Big Raises, Just Not as Much as Last Year The Wall Street Journal
- US paychecks grew faster than expected in the third quarter CNN
- Worker compensation posts big gain for ninth quarter in a row as unions flex muscles MarketWatch
- Why US wages pose a challenge for the Fed's inflation fight Greater Baton Rouge Business Report
Reading Insights
0
0
3 min
vs 4 min read
82%
727 → 128 words
Want the full story? Read the original article
Read on The New York Times