- ORIGINAL NEWS
U.S. wage growth is cooling, but some jobs are still seeing relatively big annual raises
- SUMMARY
After a surge during the pandemic, wage growth has slowed nationally to 3.1% annually.
However, certain occupations continue to experience relatively high earnings growth, according to a recent analysis from Indeed.
**High-Growth Sectors** * Legal: 5.7% annual growth * Dental: 4.8% annual growth * Child Care: 4.8% annual growth * Medical Information: 3.9% annual growth * Cleaning and Sanitation: 3.9% annual growth **Factors Contributing to Growth** Despite the overall slowdown, these sectors have benefited from factors such as strong demand for services, worker shortages, and increased competition for skilled workers.
**Sector Differences** While some sectors may experience high wage growth, it’s important to note that absolute salaries vary widely.
For instance, while child care workers have high earnings growth, their average annual salary is significantly lower than that of software developers or dentists.
**Implications for Workers** Workers in these high-growth sectors may have more opportunities for promotions, raises, and career advancement.
Those seeking higher wages might consider exploring these sectors if their current jobs offer limited growth potential.
**Current Labor Market** Economists maintain that the labor market remains healthy, even with the slowdown in wage growth.
The unemployment rate remains low, and employers continue to hire new workers.
**Pre-Pandemic Comparison** Compared to 2019 pre-pandemic levels, wage growth is above average in 47% of job sectors.
This suggests a more widespread improvement in worker compensation.
**Conclusion** While wage growth has cooled from its pandemic peak, there are still pockets of heat in the labor market.
Certain occupations in legal, dental, child care, medical information, and cleaning and sanitation are experiencing relatively high earnings growth.
However, it’s essential to consider both wage growth and absolute salaries when evaluating potential job opportunities.
- NEWS SENTIMENT CHECK
- Overall sentiment:
neutral
Positive
“The labor market remains healthy despite a broad decline in wage growth, economists said.”
“More from Personal Finance:The strong U.S. job market is in a ‘sweet spot,’ economists say”
Negative
“Nationally, wages grew at 3.1% a year in March, well below the recent 9.3% peak in January 2022, according to Indeed, which tracks average pay advertised in its online job listings.”
“Wage growth has cooled from its scorching pandemic-era pace.”