September 1st 2023.
As the U.S. economy continues to recover from the pandemic, the ZipRecruiter survey has revealed some interesting findings. Data from the survey showed that while most job postings offered higher pay last year, this year 48% of companies have reported a reduction in salary for certain roles.
This is a far cry from the real wage growth of 1.7% seen pre-pandemic, with many low-income workers experiencing historic wage increases. The past few months have seen a significant slowdown in monthly inflation, which has allowed for inflation-adjusted earnings to finally start growing again.
The JOLTS report recently released by the U.S. Bureau of Labor Statistics also revealed a decrease in the average posted wage and salary for certain job postings, while job openings experienced a large drop in July. This indicates that the labor market is cooling, which may come as a relief to employers, but it brings back many challenges that have plagued job seekers for decades.
The ZipRecruiter data showed that the industries that were hit hardest by the pay reduction were technology, travel, and transportation. For instance, it was reported that CDL truck drivers' pay rate decreased by 47.1% compared to 32.9% for Class A truck drivers.
Overall, the data has indicated the labor market has returned to its pre-pandemic state, with close to 3 million more job postings than unemployed job seekers. This shows that job seekers and employees still have a relatively strong bargaining power.
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