Wages in the US record record earnings as employers court workers

After decades of wage stagnation, workers in the United States are getting a big raise, thanks to near-record job openings.

After decades of wage stagnation, workers in the United States are getting a big raise thanks to millions of job openings that are putting prospective employees in their best position in years to demand better treatment from employers.

The employment cost index, which measures wages, salaries and benefits, rose 1.3 percent in the three months ending in September, the US Department of Labor said on Friday. That’s the biggest jump in records going back 20 years.

Over the past 12 months, the index gained 3.7 percent.

Wages and salaries soared 1.5 percent in the third quarter, more than doubling the 0.7 gain in the second quarter, while profits also more than doubled from the previous quarter to 0.9 percent. hundred.

All sectors experienced wage and salary increases, underscoring the general tightness of the US labor market.

A record 4.3 million Americans quit their jobs in August, or nearly 3 percent of all workers employed in the U.S., while the number of job vacancies remained near a record high of 10.4 million.

The number of people leaving work and the large number of job openings have become a growing source of concern for the nation’s economic recovery.

Jobs are officially created only when someone is hired, and the economy added just 194,000 of them in September, marking the meanest monthly gain this year.

Companies, especially smaller ones, struggle to fill positions. About 51 percent of small business owners said they had job openings they couldn’t fill in September, according to the National Federation of Independent Business.

With so many jobs in begging, employers are increasingly improving offers to prospective employees with bigger paychecks, signing bonuses, and better benefits.

A survey conducted this week by job site Indeed showed that employers offering higher pay and remote work options are better positioned to attract the interest of job seekers. The same survey also showed that job seekers have much less interest in jobs such as babysitting and warehouse work than before the pandemic, and much more interest in civil engineering and IT jobs.



Reference-www.aljazeera.com

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