U.S. private payrolls grew at their slowest in almost two years in November. Wage growth has also slowed, suggesting employers may have started to brake amid a worsening economic outlook.
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Wages for employees who did not change jobs increased by 7.6% compared to the same month last year. Growth slowed for the second month in a row, suggesting that workers’ bargaining power may be starting to wane. Employers who changed jobs, on the other hand, saw a 15.1% (median) annual salary increase at their new job.
ADP compiled the data in collaboration with the Stanford Digital Economy Lab.
“While it may be difficult to identify a tipping point in the labor market, our data suggests that monetary tightening will have an impact on job creation and wage growth,” ADP chief economist Nella Richardson said in a statement Monday. It is suggested that it is given.” “And companies are no longer in the turnover mode they used to be. Turnover is down and the post-corona recovery is stable,” she continued.
The labor market has largely remained strong so far despite aggressive rate hikes. The current data suggest that the slowdown has become even more pronounced. A disappointing development for workers, but a welcome one for policy makers battling the highest inflation in decades.
Employment growth was most pronounced in entertainment and hospitality. On the other hand, the number of workers in the manufacturing industry decreased by 100,000.
See table for detailed statistics.
Original title:US Firms Slow Hiring and Wage Gains Moderate, ADP Data Show (1)(excerpt)
(Add wage data in the third paragraph)
