Pay Grew Again, But Slower, in Second Quarter
The U.S. Bureau of Labor Statistics (BLS) recently released its latest report on compensation and wages for the second quarter of the year. In it, the BLS noted that wages had grown again for the quarter, but at a slower pace than in the first quarter.
At a time when the U.S. economy is showing positive signs of improvement, and when businesses are healthy and profitable, it’s encouraging news for employees that wages are increasing. This indicates that employers are continuing to remain competitive with pay, but that inflation is not putting too much pressure on wages.
But what does this report mean for HR professionals? Here are some key takeaways from the BLS report:
1. Private-sector wages and salaries grew by 0.7 percent in the second quarter, down from 1.2 percent in the first quarter. This indicates that employers are still competitive with pay, but that they are being more cautious in their salary increases.
2. Wages and salaries for state and local government workers grew by 0.4 percent in the second quarter, up from 0.3 percent in the first quarter. This suggests that government employers are feeling more comfortable with increasing wages and salaries, but that they are still being cautious.
3. The BLS also reported that real average hourly earnings for all employees fell by 0.1 percent in the second quarter, after increasing by 0.4 percent in the first quarter. This suggests that wage growth is slowing, but that inflation is not putting too much pressure on wages.
4. The BLS also reported that the number of workers working part-time for economic reasons increased by 1.1 million in the second quarter, up from 0.7 million in the first quarter. This indicates that employers are still cautious in their hiring decisions, which could be contributing to slower wage growth.
These figures all suggest that employers are continuing to remain competitive with pay, but that inflation pressures appear to be leveling off. This is good news for HR professionals, as it suggests that employers are still willing to invest in their workforce, but that they are being more cautious in their salary increases.
For HR professionals, it’s important to be aware of these figures and to use them to inform their own salary and wage decisions. It’s also important to remember that wage growth is only one factor in employee engagement and retention, and that other factors such as job satisfaction and career development should be taken into account.
Ultimately, the BLS report is good news for HR professionals. It shows that employers are still willing to invest in their workforce, but that they are being more cautious in their salary increases. This is a trend that is likely to continue in the coming quarters, and one that HR professionals should keep an eye on.
