New data from career site Indeed shows that wage growth in America has fallen sharply over the past year, with salaries in February up just 3.3% from a year ago. For comparison, wages were up 9.3% in January 2022 compared to the year prior.
“The pace of deceleration is striking,” Indeed labor economist Nick Bunker said. “Posted wage growth has fallen by almost 3 percentage points over the past year.”
The deceleration has hit multiple industries and income levels, but it’s most visible in low-wage sectors, where wage growth plummeted from 12.5% at the beginning of 2022 to just 3.4% this February. Growth for high-wage earners fell from a high of 8.2% to 2.6%.
“Given the huge run-up in posted wages for those sectors, wage growth is still above its pre-pandemic pace,” Bunker said. “How long this will last is uncertain.”
