The extraordinary wage growth enjoyed by Americans who switched jobs during the pandemic has finally disappeared, according to the latest monthly numbers from the Federal Reserve Bank of Atlanta.
Wages for so-called “job switchers” rose 5.6% over the last year, while those for “job stayers” rose 5.2%, according to Atlanta Fed data published Thursday. The difference between the two was narrowest since September 2020, before a tightening labor market sent wages for both groups soaring.
The figures represent the latest data points suggesting the labor market is gradually cooling after a monthly Bureau of Labor Statistics report published Sept. 1 revealed the slowest pace of hiring over the last three months since the onset of the pandemic.
Still, other indicators suggest labor remains resilient: New applications for unemployment insurance fell last week to the lowest level since February, a separate Labor Department report out Thursday showed.