US wages, salaries rise 1% in Q2 as job market cools

By Ovunc Kutlu

ISTANBUL (AA) - Wages and salaries in the US increased only 1% in the second quarter of this year, showing that the job market is cooling in the world's biggest economy.

The figure is a slowdown from the 1.2% gain recorded in the first quarter of this year, according to data released Friday by the Labor Department's Bureau of Labor Statistics.

On an annual basis, wages and salaries increased 4.6% in the April-June period of 2023. This also reflects a significant softening from the 5.3% annual gain recorded in the same period of 2022.

The easing figures suggest that employers in the US are feeling less pressure to offer higher salaries for workers, while the Federal Reserve tries to tame wages in its fight against high inflation.

The Fed on Wednesday raised its benchmark interest rate by another 25 basis points, perhaps for the last time for some analysts, carrying the target range for the federal funds rate between 5.25% and 5.5% – the highest in more than 22 years.

Consumer inflation saw just a 3% annual increase in June, its lowest in more than two years – significantly down from its 40-year high of 9.1% recorded in June 2022.