Three Sectors Explain Most of Deceleration in U.S. Wage Growth
U.S. April Jobs Report 'Perfectly Solid,' Says Krueger
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The deceleration in U.S. wage growth in April was relatively broad-based, with eight of 13 sectors seeing a down-tick. But three sectors made an outsize contribution to the slowdown: education and health services, financial activities and manufacturing.
The large number of Americans employed in education and health services makes it the biggest contributor to overall wage growth, and pay gains in that industry haven’t seen much of an acceleration since mid-2017. Because of the sector’s size, this will have to pick up further if overall U.S. wage growth is to rise to 3 percent, according to Omair Sharif, an economist at Societe Generale.