MNI BRIEF: ADP Sees Slowest Wage Growth in Oct Since 2021

U.S. wage growth has slowed but remains hotter than in 2019, reflecting a structural shift in the labor market since the pandemic, ADP Chief Economist Nela Richardson said Wednesday. Job stayers saw pay increases of 5.7% from a year earlier in October, the slowest pace of growth since October 2021, while job changes saw a 8.4% raise, the smallest increase since July 2021, according to the ADP Employment Report.

Wage growth for the leisure and hospitality sector remains above 6%, compared to generally flat before the pandemic, Richardson noted, though people hired in the last three months in those businesses have not seen their hourly wage budge. Persistent labor shortages make it difficult to know whether demand or supply factors are slowing hiring.

"It seems like the pandemic dented the labor market in some respect," she said. "It's not exactly the same market as it was in 2019."