Average hourly earnings for employees nationwide were up 5.2 percent in July over the same month last year, according to Labor Department data reported by The Wall Street Journal.
Six details:
1. Private sector workers received a 5.7 percent wage bump in the second quarter, which is the fastest pace since 2001.
2. Although wages are rising, it's not enough to keep up with inflation. When adjusting for inflation, which was at 8.7 percent in July, private-sector wages and salaries dropped 3.1 percent for the second quarter.
3. The measure for worker compensation and productivity known as unit labor costs jumped 10.8 percent in the second quarter of 2022 compared to the same period in 2021.
4. Workers are expecting inflation to keep raising prices, and are more likely to ask for raises to keep up with the cost of living, according to the Journal.
5. Federal Reserve officials feel the wage growth is too fast, according to the report, and increased wages are likely to continue until the broader labor shortage stabilizes.
6. There are still more jobs than people seeking work, and employees are quitting their jobs at a higher rate than in February 2020. In June, 2.8 percent of employees quit their jobs.