Job switchers took home a fatter paycheck
Except today, loyalty is measured in dollars. And employees will gladly trade in their Beskar for a couple extra Imperial credits.
In November 2022, US median hourly wages increased (compared to the previous year):
- 5.5% for those staying at their jobs.
- 8.1% for those changing jobs.
But when you factor in November’s 7.1% inflation, it turns out workers who stayed at their jobs actually saw their purchasing power decline.
The leisure and hospitality industry saw the largest wage increases of any industry. And low-skill workers (+6.7%) saw a larger pay bump compared to high-skill workers (+6%).
So what does this mean for businesses and employers?
- Price increases on goods and services have made it easier for employers to absorb the rising wages.
- Businesses in the Boston Fed district see labor as the biggest source of inflation for 2023.
Meaning price increases might not be a relic of 2022.