The workers in these two industries are the only ones who are applying at the moment

But in fact, only employees of There are two industries – entertainment and hospitality and retail – that are actually advancing, once inflation is taken into account.

In general, the wages and salaries of private industry workers have risen By 4.2% between December 2019 and last June, before considering price hikes, according to an analysis of quarterly data for the cost of hiring index by Jason Furman, professor of economics at Harvard University.

butAnd the The analysis found that once inflation was taken into account, paychecks shrank 1.2% over that time period.

US consumer prices jumped 9.1% year-on-year in June, their highest level in more than 40 years, according to the Bureau of Labor Statistics.

“Workers have more bargaining power for higher wages, but companies also have the ability to set higher prices,” said Furman, who is also a former chair of the Obama administration’s Council of Economic Advisers. And prices are hitting wages.”

Where wages rise

Leisure and hospitality workers, including waiters, chefs and hotel staff, are in high demand after being hit hard by job losses when non-essential businesses closed at the start of the pandemic. Their wages have increased 0.9% since December 2019, after accounting for inflation, according to Foreman analysis.

While the overall economy has now regained all the jobs it lost during the pandemic, the leisure and hospitality sector remains 1.2 million jobs, or 7.1 percent, below its level in February 2020, according to the Bureau of Labor Statistics’ monthly jobs report, published. Friday.

Retail workers, such as salespeople, cashiers, and customer service representatives, have also been drawn to by employers. This has resulted in 0.2% inflation in wages for them. Employment in this sector is 208,000 more than its February 2020 level.

But even employees in these industries have seen their salary increases erode this year as inflation continues to rise. Pay increases for leisure and hospitality workers and retail employees were 2% and 1.2%, respectively, for the two years ending in December 2021.

Skanda Amarnath, CEO of Employ America, which advocates for a high-paying economy and employment, said employers in low-wage industries actually had to raise wages in order to hire and retain the employees needed to meet demand in 2021.

“Right now, the CPI is very strong compared to everything else,” he said of the CPI, a common inflation measure.

Where do they fall?

Across all other industries, inflation-adjusted wages have fallen since the end of 2019, led by utility workers with a 2.7% decline.

Workers in construction and information technology saw their salaries fall by 1.8%, while those in the industrial and financial sector saw a 1.7% decrease.

Even wholesale workers, such as truck drivers, who have also been in demand during the pandemic as supply chains falter, have lost their earnings. Their wages have fallen 0.6% since December 2019. This is a reflection from the end of 2021, when their salaries have increased by 0.1% over the past two years.

The Federal Reserve is closely monitoring the employment cost index report to see how high wage inflation is. The data helps the Fed determine how much to raise interest rates.

But the Fed looks at wage growth before the impact of inflation, and that has remained strong. The 5.3% jump during the year to June was the highest since the spring of 1983.

So despite inflation-adjusted wages falling in most industries, the Fed is expected to continue raising interest rates this year in an effort to slow price increases, economists say.

Leave a Comment