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February’s Consumer Price Index numbers (released in March) showed that inflation is speeding up, and struggling workers seem set for further economic pain. Additionally, new analysis by #JUSTCapital and #RevelioLabs found that just over 36% of all U.S.-based Russell 1000 workers are not earning a family-sustaining living wage. Read more from JUST Capital: https://lnkd.in/eBNuqATx

The employment cost index, which tracks worker salaries and benefits, added 1.2% in the first quarter, the Labor Department reported Tuesday. That was higher than 0.9% in the fourth quarter of 2023 and above the Dow Jones consensus estimate for a 1% increase. #inflation #wages #employmentcosts #workforcetrends #employmentcostindex #salary https://lnkd.in/giqPmRCj

Wanted to share my new issue brief for the Center for American Progress on real wage growth, which has been featured in Bloomberg's Slow Boring (Matt Yglesias), NPR's Marketplace, Politico's Morning Money, and Axios this week. We typically measure how average wages are keeping up inflation, but averages are just, well, averages. When we look under the hood, about six in ten (57%) of workers received annual raises in November that were larger than inflation--above the pre-pandemic 2017-2019 level. The median inflation-adjusted raise was about 45 cents an hour, which equates to over $900 a year for a full-time, year-round workers What's useful to know here is that inflation-adjusted wage growth is strong and broadly based, but even in today's and 2019's strong economies large shares of workers' wages didn't keep up with inflation. Potentially useful for thinking about the "vibes" in the economy.

With everything that's going on in the world, it's encouraging to read good news. These new data from Center for American Progress spotlight promising strides for workers, with nearly 6 in 10 earning wages, adjusted for inflation, that are greater than the year before. “Many economists have pointed out that real wages for a typical worker today are higher than they were before the pandemic and are growing at about the pre-pandemic rate … These results indicate an economy that is delivering historic, broad-based real wage gains for workers while emerging from one of the deepest recessions on record.” Wage increases are one important step in the movement toward quality jobs. Hoping to build on this great momentum, The James Irvine Foundation will continue to support organizations and engage partners focused on increasing the power of workers to improve their jobs and lives. #WageGrowth #QualityJobs #WorkerPower https://lnkd.in/g23WQuFD

US Payroll Growth Slows and Jobless Rate Ticks Up to 4.1% The latest data from the Bureau of Labor Statistics shows that US hiring and wage growth decelerated in June, with payrolls rising by 206,000 and significant downward revisions for the prior two months. The unemployment rate has climbed to 4.1%, the highest since November 2021. A key highlight from this report is the sustained slowdown in hiring, coupled with a recent moderation in inflation. This development bolsters the prospects that Federal Reserve policymakers might lower interest rates as early as September. With the jobs report being the last before the Fed's meeting later this month, all eyes are on how these numbers might influence their decision. The labor market's cooling, reflected in the slowest average employment growth since early 2021 and a rising participation rate, adds to the narrative of an economy in transition. The participation rate hit 62.6%, with prime-age workers (ages 25-54) reaching a 22-year high of 83.7%. Most job gains were seen in healthcare and government sectors, while manufacturing payrolls saw the biggest decrease since February. The sharp decline in temporary-help employment is also noteworthy. As Treasury yields fell and the S&P 500 opened little changed post-report, investor expectations align with the sentiment that the Fed might reduce rates twice this year. The upcoming Fed meeting will be crucial in setting the course for the next economic phase. #USJobs #Economy #FederalReserve #InterestRates #HiringSlowdown #Inflation #LaborMarket #UnemploymentRate #PayrollGrowth

In 2024, the stretch between wages and the cost of living has widened for our blue-collar workforce. Despite strides in job market recovery and wage growth, inflation pressures mean paychecks don't go as far as they used to. We need to work together to bridge this gap and support the backbone of our economy. #Inflation #BlueCollarJobs #CostOfLiving #WageGrowth #EconomicChallenges

More than half of U.S. adults aren't able to keep up with inflation. That's scary. Inflation continues to outpace wage growth. The financial stress on workers across the nation is evident. Recent surveys show 53% of U.S. adults report their paychecks aren't keeping up with inflation, and 38% find themselves in a more stressful financial position than just a year ago. Another report shows a staggering 81% of workers' wages haven’t kept pace with the cost of living. This growing financial strain is not just a statistic; it's the lived reality of millions. So, how do we fix this within the current economic climate? One innovative solution gaining traction is Earned Wage Access (EWA). EWA offers a lifeline to employees, allowing them access to earned wages before the traditional payday. This flexibility can be a game-changer for many, providing immediate relief for unexpected expenses or simply helping to bridge the gap during tough financial periods. Moreover, some forward-thinking companies are taking additional steps to support their employees' financial well-being, including offering emergency savings benefits and facilitating automatic paycheck deposits into emergency funds. These measures not only help employees manage their finances more effectively but also contribute to a more engaged, productive, and loyal workforce. The evidence is clear: as the cost of living continues to rise, traditional pay schedules may no longer suffice. It's time for companies to embrace innovative solutions like Earned Wage Access to support their employees in these difficult times. If your organization is looking to make a real difference in the lives of its employees, consider the benefits of EWA. Let's work together to create a more financially resilient workforce. #financialwellness #earnedwageaccess #employeebenefits

With 82% of hourly workers feeling the impact of inflation, it's clear that more needs to be done to support these hardworking individuals. In this new poll from DailyPay, Inc. and the American Savings Education Council, learn how Earned Wage Access can make a difference. Let's chat about the winning combo of HCM and DailyPay to supercharge your selling efforts, today! #MarketplacePartners #Integrations #FinancialFreedom #TechSales

ADP recently released a new study in which workers around the world expressed expectations that their salaries and pay would continue to increase even as inflation has come down from 40-year highs of in 2022. Is this surprising to you? Let's set up some time to talk about other trends we're continuing to see.

‘The job’s not quite done’ The U.S. economy is a paradox. Official figures show that growth is solid, jobs are plentiful and wages are climbing, and yet voters are mostly feeling down and giving President Biden little credit. Friday’s jobs data is adding to that split-screen view, with economists pointing out red flags in an otherwise sterling report. The labor market seems to be performing strongly. Employers added 353,000 jobs last month, almost double economists’ forecasts, and an additional 100,000 via revisions in previous months. Average hourly wages rose, too. But that doesn’t necessarily mean workers are more prosperous. For a start, wintry weather shrank the average workweek to 34.1 hours in January. In particular, nonsalaried employees, especially those in retail, construction and the hospitality sectors, worked fewer hours, which probably ate into their pay, Bill Adams, an economist at Comerica Bank, said in a research note. And Goldman Sachs’s wage tracker for U.S. workers fell after Friday’s report on a quarterly annualized basis. Workers are increasingly anxious about changing jobs. Quit rates have fallen to a four-year low, suggesting employees are feeling less confident that they’ll find a better position elsewhere. If this trend persists, it could also put the chill on wage gains that soared during the so-called Great Resignation. Big segments of the work force are checking out. U.S.-born male workers are leaving the work force in larger numbers, Adams said. On the flip side, “foreign-born labor force participants have accounted for all of the job growth over the last year, offsetting the effects of an aging native-born workforce,” he added. Such numbers could explain why Biden’s approval rating continues to languish, largely for his handling of the economy. It also may explain why Donald Trump, who draws support from a base of male U.S.-born voters, is seen as a better steward of the economy. High inflation isn’t helping Biden’s case with voters, either. Jay Powell, the Fed chairman, said last week that a March rate cut was probably not on the cards, but he told “60 Minutes” on Sunday night that three moves were still expected in 2024. The “danger of moving too soon is that the job’s not quite done,” he said, reaffirming his view that the central bank needs more evidence that inflation is under control before making a decision. That said, there’s still a disconnect between the markets and the Fed, with futures traders still seeing four to five cuts this year. HERE’S WHAT’S HAPPENING Harvard names new directors ahead of presidential search. Ken Frazier, Merck’s former C.E.O., and Joe Bae, the co-C.E.O. of KKR, will join the Harvard Corporation, the university’s governing board. The appointments come as Harvard prepares to look for a new leader after Claudine Gay resigned in December amid pressure from donors; Frazier is close to Ken Chenault, the former American