Are Your Wages Going Up? What You Need To Know About Current US Wage Growth
Written by
Seychelle Thomas
Edited by
Nicholas Morine
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
According to the Bureau of Labor Statistics, payrolls increased by 187,000 jobs in July — a reality which reduced unemployment to a very low rate of 3.5%. The latest statistics show wages are still trending upward.
Wages Outpace Original Forecasts
Pandemic-era labor shortages drove wages higher — and that trend may be sticking around. In July, average hourly earnings were up by 0.4% (an average of $33.74 per hour) from the previous month, resulting in a year-over-year increase of 4.4%.Â
If demand for labor weakens, we may see wages level out. The Bureau of Labor Statistics indicated the average workweek fell to 34.3 hours, a figure which matches closely with the onset of the COVID-19 pandemic. Employers are more likely to cut hours in response to less demand rather than releasing staff altogether. Manufacturing jobs in particular remained in high demand, posting an average workweek of 40.1 hours.
Industries With Steady Wages
Although job demand is slightly slowing, some sectors have continued to add jobs. These industries could be excellent options for job-seekers looking to increase their wages. Industries with the most significant job gains for July included:
- Healthcare: 63,000 jobs.
- Social assistance: 24,000 jobs.
- Financial activities: 19,000 jobs.
- Wholesale trade: 18,000 jobs.
- Construction: 18,000 jobs.
The healthcare sector alone added 63,000 jobs in July, with most job increases coming from ambulatory care, hospitals, and nursing and residential care facilities. Social assistance saw the next largest growth profile. This industry includes professions like childcare providers, home care aides, and social workers.
Financial activities added a monthly average of 16,000 jobs in the second quarter. Primary professions contributing to job growth in this sector include real estate agents and rental / leasing roles. The construction industry continued to grow, particularly regarding specialty trade contractors and non-residential building construction workers.
While wages may be ticking upward, they are essentially be matching the pace set by inflation. According to the BLS, inflation (non-seasonally adjusted) rose by 0.3% in June.
More From GOBankingRates
