Wage growth nears three-year low in June as labor market enters 'different regime'
What was June's wage growth rate for job stayers?
In June, wage growth for job stayers increased at the slowest rate in nearly three years, with a 4.9% increase from the prior year, according to ADP data. This is a decrease from the 5% growth seen in the previous month and marks the slowest growth since August 2021.
How did wage increases for job changers trend in June?
In June, wage increases for job changers slowed for a third straight month. Wages for workers who changed jobs increased 7.7% year over year, down from 7.8% the month prior and significantly lower than the 16.4% peak in June 2022.
What did ADP's chief economist say about current wage growth regimes?
ADP's chief economist, Nela Richardson, said that the current wage growth regime is different from the past, with slower growth for both job stayers and job changers. She questioned how low the growth would get and whether it would return to pre-pandemic levels.