Odd Lots
The Hottest Sectors of the Reopening Are Now Driving a Wage Slowdown
Things are starting to look more normal
The Amazon SAN3 fulfillment center in the Otay Mesa neighborhood of San Diego, California, US, on Wednesday, March 9, 2022.
Photographer: Bing Guan/BloombergThis article is for subscribers only.
Labor data for January came in much stronger than expected, with the unemployment rate falling to its lowest level since 1969.
That being said, average hourly earnings came in right in line with expectations, growing 0.3% month over month, which is down from a 0.4% pace last month. If you zoom out a bit, and look at any time frame, it’s clear that wage growth is decelerating, which is something the Federal Reserve believes is crucial for hitting its inflation goals.