Wage growth keeps slowing for job switchers as US labor market cools off

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Nela Richardson,Switchers,Richardson

ADP data showed that the median year-over-year pay increase for job switchers fell to 7.8% in May, from a recent spike of 8.3% in March and 8% in April.

The pay gap between job switchers and job changers narrowed in May in the latest sign that the US labor market is cooling from a hot start to 2024.from ADP released Wednesday showed that the median year-over-year pay increase for job switchers fell to 7.8% in May, from a recent spike of 8.3% in March and 8% in April. The gap between pay gains for job changers and those of job switchers, which grew at a 5% pace in May, is at its lowest level since February and a far cry from 2022-2023 levels.

Richardson reasons these are signs of the labor market stabilizing. The question is whether this balance lasts, or if it is a sign of a more significant slowdown.Data from ADP released Wednesday also showed 152,000 private payrolls were added in May, lower than the 188,000 seen in April, and below economists estimates for 175,000 additions.

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