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MNI BRIEF: Higher Wages Needed to Bring US Workers Back - ADP

MNI (Washington)

Higher wages are needed to alleviate a labor shortage weighing down the U.S. labor market recovery, ADP chief economist Nela Richardson said Wednesday, with wage pressures likely to develop in select industries and locations.

The economy might "need to see some wage increases" to "solve that hiring problem," she told reporters on a post-data briefing, though noted that employers are mostly struggling to find workers in high-contact industries that represent "isolated segments of the labor market." "Overall, we're seeing broad rebounds and gains over the course of the year," she added.

Private sector payrolls rose 742,000 in April, according to ADP's monthly employment report, the strongest since September and mostly driven by payrolls gains in leisure and hospitality, which grew by 237,000. Hourly wages are expected to remain unchanged in the Bureau of Labor Statistics' April jobs report, according to a Bloomberg survey.

Source: ADP Research

MNI Washington Bureau | +1 202-371-2121 |
MNI Washington Bureau | +1 202-371-2121 |

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