US job wage growth continues to rise, with technology and financial sectors leading the way
Job vacancies in the United States continue to rise, driven by the software and financial industries, with a 3.4% year-on-year increase in August, marking the fourth consecutive month of accelerated growth. Despite a reduction in hiring, wages in high-income industries are increasing at a faster pace, while there is also some growth in medium and low-income industries. Overall data indicates a healthy labor market, with companies raising wages to attract employees. Federal Reserve Chairman Powell stated that wage growth is approaching a sustainable level, still above the 2% inflation target
According to the Zhitong Finance and Economics APP, driven by high-income industries such as software and finance, the wage growth of job vacancies tracked by the American job site Indeed, which had been steadily declining for two consecutive years, has risen again.
According to data from Indeed Hiring Lab, the salary growth announced in August increased by 3.4% year-on-year, marking the fourth consecutive month of accelerated growth.
Nick Bunker, Director of North American Economic Research at Indeed Hiring Lab, stated in a blog post, "After steadily declining following the peak at the beginning of 2022, wage growth stopped declining by the end of spring 2024. Now, with several months of data, it is clear that annual wage growth has not only stabilized but has also moderately re-accelerated."
Despite reductions in hiring by developers and employers in the financial industry, wage increases in job advertisements in these industries are accelerating. There has also been growth in the mid-to-low-income industries, albeit at a smaller rate.
Overall, Indeed's data indicates a healthy labor market, with competition prompting companies to raise wages to attract employees.
However, compared to the peak of labor shortages a few years ago, profit growth for companies has significantly declined.
This week, after the Federal Reserve cut interest rates for the first time in four years, Federal Reserve Chairman Powell acknowledged that in the long term, wage growth still exceeds the Fed's 2% inflation target.
He stated in a press conference after announcing the rate cut, "But they are very close to sustainable levels. So we feel good about that."