Dec 11, 2022 - Economy

Wage growth stumbles

Data: Indeed Hiring Lab; Chart: Axios Visuals

Wages rose swiftly in 2021 as employers from tech firms to coffee shops struggled to find workers.

By the numbers: Wages spiked fastest in essential, low-wage jobs in the service and care industries during the pandemic — peaking at 12.3% year-over-year growth at the beginning of 2022.

  • As the world opens back up, wage growth in these sectors is falling fastest, notes Nick Bunker, an economist at the Indeed Hiring Lab.

The bottom line: Wage growth remains strong — and well above 2019 levels — but the rapid gains workers made during the pandemic are slowing.

  • "As demand has faded and workers' interest has returned, the competition [among employers] has faded," says Bunker.
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