Pay increases for American workers have continued to decline from post-pandemic highs. New ADP data shows annual wage growth for job stayers at 4.9% in June, the slowest since August 2021, and 7.7% for job changers, down from 7.8% in May. Despite the slowdown, the labor market remains tight. The Bureau of Labor Statistics reported 8.14 million job openings at the end of May, up from 7.92 million in April. ADP's National Employment Report indicated 150,000 private-sector jobs were added in June, slightly down from May's 157,000. Economists are cautious about the labor market's future, with the unemployment rate at a two-year high and rising continuing unemployment benefit claims. Despite low layoffs, the Federal Reserve is monitoring labor market conditions and inflation data closely. The upcoming nonfarm payroll report is expected to show 190,000 new jobs added in June, with unemployment steady at 4%.
See "Wage growth nears three-year low in June as labor market enters 'different regime'", Josh Schafer, Yahoo Finance, July 3, 2024