Job switchers took home a fatter paycheck – The Average Joe

    Job switchers took home a fatter paycheck

    Victor Lei — Head of Research

    January 3, 2023

    January 3, 2023

    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.

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