Prices keep going up and the US economy is slowing down, but workers are still seeing their wages rise.
Private sector wages and salaries jumped by 5.7% on a yearly basis in the second quarter, compared to 5% in the first quarter, according to employment cost data released by the US Bureau of Labor Statistics Friday.
The continued rise in wages signals that employers are still struggling to hire workers. Overall, the job market is holding strong even as business investment drops off. For now, that should bolster the economy.
That may be little comfort for workers—and for policymakers at the US Federal Reserve. Adjusted for inflation, wages dropped by 3.1% in the past year, meaning workers can buy less with their paychecks.
