The Job Market Remains Resilient with Wage Growth Coming in Hot

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The jobs report soundly beat expectations, with job gains broadly spread across the economy and about 60% higher than the 2019 monthly average. Since June, when the Fed began its streak of 75-basis point rate

The jobs report soundly beat expectations, with job gains broadly spread across the economy and about 60% higher than the 2019 monthly average.People are also reading… Wage growth came in twice as high as expected and sent the stock market into a tailspin. The current pace of wage growth is incompatible with the Fed’s inflation target and raised the likelihood that the Fed would keep interest rates elevated for longer.

Wage gains for nonsupervisory workers in leisure and hospitality recorded double-digit growth rates over the last 2 months, 11.7% in November, and revised up to 10.0% in October, over the past 12 months. Industry workers are recording above-inflation-rate job gains since August 2021.Businesses are unlikely to see their hiring challenges ease due to continued weakness in labor force participation.

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