(WSVN) - New economic data shows that wages are finally beating inflation in the U.S. Employers are both adding jobs and increasing paychecks, leading to a brighter picture of the U.S. labor market.
According to the latest report from the Labor Department, workers’ paychecks grew by 16 cents to an average of $33.36 per hour in April, marking the biggest monthly increase since March 2022.
Industries struggling to hire workers, such as construction, transportation, and wholesale, are offering fatter paychecks to attract qualified candidates.
Meanwhile, employees in the leisure and hospitality sector, including bars, restaurants, and hotels, are also seeing strong wage gains. This sector was hit hardest by the pandemic and the recession fears that followed, causing many service workers to be reluctant to return to the industry.
Experts suggest that the increase in hiring and paychecks will lead to an improvement in the cost of living crisis that many households have been facing over the past two years.
While the rise in wages may be promising for now, economists warn that it remains to be seen whether this trend will continue in the long term.
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