Wage growth cools in a positive sign for the Fed
Jul 28, 2023, 7:30 AM
FILE - Hiring signs are displayed at a grocery store in Arlington Heights, Ill., Friday, Jan. 13, 2023. (AP Photo/Nam Y. Huh, File)
Credit: ASSOCIATED PRESS
(AP Photo/Nam Y. Huh, File)
Washington, DC (CNN) — Wages gains cooled in the second quarter, showing some easing of inflationary pressures, according to data from the Bureau of Labor Statistics released on Friday.
Wages and benefits paid to US workers rose 1% in the second quarter from the prior one, a slightly weaker pace than the 1.2% gain in the first three months of the year.
The Employment Cost Index, a comprehensive report on employers’ compensation costs, advanced 4.5% in the second quarter from a year earlier, a slower pace than the 4.8% rise earlier in the year.
The weaker wage figures are a positive sign for the Federal Reserve, which is trying to cool the economy and bring the labor market into better balance to fight inflation still running well above the central bank’s 2% target.
This story is developing and will be updated.
