MNI: US Wage Growth Has Stabilized Since Spring -ADP

U.S. wage growth has stabilized over the past several months and the trend could bode well for inflation, ADP chief economist Nela Richardson said Wednesday after the payroll processing firm released a new wage measure.

Workers who stayed at their jobs saw an annual pay gain of 7.6% in August, a significant jump compared to 2% in early 2021 but stable since March or April, Richardson said. Those who switched jobs saw a median year-on-year gain of 16.1%, with leisure and hospitality workers seeing a 12.1% pay jump. ADP’s new wage measure captures the salaries of the same cohort of 10 million individual employees over a 12-month period.

"The pay gains show that wages have jumped up but they have stabilized," she said. That "could be interpreted as good news for the future of inflation, as the contribution of wages overtime."