Strong US Job Market... White-Collar Worker Wages Also Rising

[Asia Economy Reporter Seulgina Jo] Due to the heat in the U.S. labor market and inflationary pressures, wages are rising rapidly not only for part-time workers such as waiters but also for white-collar workers.

The Wall Street Journal (WSJ) reported on the 26th (local time), citing federal government data, that wages for all private sector workers in the third quarter increased by 4.6% compared to the same period last year. By industry, the increase was significant in service sectors such as retail and hospitality. In management, business, and finance sectors, wages rose by 3.9%. Although this is lower compared to all job categories, it is the highest level since 2003.

According to a survey conducted earlier this month by the Conference Board, U.S. companies are considering an average wage increase of 3.9% next year, the highest since 2008. In particular, salary increases are expected for workers with university degrees, especially in finance, legal, and technology fields.

Alan Johnson of consulting firm John S. Associates said, "There is significant pressure related to wages. Although employment was reduced due to the impact of COVID-19, as the economy recovers, employees’ workloads have increased," adding, "Employees want compensation for the increased workload and stress."

Amanda Richardson, CEO of software company CoderPad, stated, "We decided to raise employee salaries by 10%," and mentioned, "At a recent meeting of industry CFOs, there was a consensus that a double-digit increase is necessary to keep up with recent inflation rates and the demand for tech talent."

However, there is also analysis that such wage increases could lead to inflation in the future, creating a vicious cycle that requires further wage hikes. WSJ reported, "As inflation approaches 7%, the highest in 39 years, price increases may offset the real effects of wage increases, so workers will want higher wages."

This content was produced with the assistance of AI translation services.