Job-Hoppers Face Slowing Wage Gains as Labor Market Loses Steam
Wage gains for job-hoppers in the US are slowing down, indicating a loss of steam in the labor market. The three-month average of annual wage growth for job switchers dropped to 5.6% in August, down from 8.5% in July 2022, and is now barely higher than the wage growth seen by those who didn't change jobs last month. This decline in wage growth for job switchers suggests a slowdown in job-hopping and labor demand. The drop in the quits rate and the rise in the unemployment rate also indicate a less dynamic labor market. However, total employment remains high, signaling that the labor market is slowing but still strong.