Business & Finance
U.S. job switchers saw wage gains hit three-year high, report says
CBS News reports that lower-income households experienced faster wage growth than higher earners in August.
The short version
- The three-month moving average pay increase for workers changing jobs reached a three-year high of 12.5% in July, according to the Bank of America Institute.[CBS News]
- After-tax wages for lower-income households rose 4.7% year over year in August, outpacing the 3.5% increase seen among higher-income households.[CBS News]
- Nearly a quarter of U.S. workers remain functionally unemployed while the federal minimum wage sits unchanged at $7.25 since 2009.[CBS News]
- An economist noted that switchers securing larger raises might simply be stronger performers rather than solely gaining from moving.[CBS News]
Key facts
- The three-month moving average pay hike for workers who changed jobs hit 12.5% in July, reaching a three-year high.[CBS News]
- Lower-income households experienced a 4.7% year-over-year increase in after-tax pay in August.[CBS News]
- Almost 25% of American workers meet the criteria for functional unemployment by being jobless, involuntary part-time, or making under $26,000 annually.[CBS News]
- The federal minimum wage remains set at $7.25 per hour, where it has stayed since 2009.[CBS News]
What remains uncertain
- It remains unverified whether switching roles guarantees higher raises or if switchers represent inherently higher-performing workers.[CBS News]
Sources
Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.
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