Payscale’s quarterly index was released this morning giving us all the latest trends on US wages.The headline number shows a modest recovery. Annual growth is the highest in three years, up 3 per cent year over year.
But there’s a bullish trend happening for the first time, according to lead economist Katie Bardaro.
Smaller company wage growth is now outpacing larger companies. She told us this has never before happened. Historically large companies experienced larger pay increases, however over the last two quarters this has switched.
This is an encouraging sign for the economy, according to Bardaro.
“Small companies don’t have a corporate HR structure that people have to go through for hiring, so they’re a lot faster moving. So if they’re having wage increases that’s an encouraging sign that they’ll hopefully spread out to the larger and medium sized companies as well,” Bardaro said.
As for the best industries with the most wage growth, Bardaro pointed to, Mining Oil and Gas Exploration and Utilities, which are seeing strong profits.
Professional and Scientific Technical Services and IT have good opportunity for growth in employment and increased wages.
Health Care has been the only industry consistently strong for the past two years.
The beleaguered manufacturing industry is finally making a comeback, with wages rising faster than the national average since 2011.
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