U.S. Wage Growth Slows to 0.9% in Q4 as Job Market Cools, Offering Hope for Lower Inflation
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Pay and benefits for U.S. workers grew 0.9% in Q4 2022, the slowest pace in 2.5 years, indicating a cooling job market.
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Slower compensation growth could contribute to lower inflation and support the Fed cutting interest rates in 2019.
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Wage gains still healthy overall but have moderated from peak growth above 5% in 2022 when inflation was much higher.
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Hiring has slowed to more modest levels, reducing pressure on companies to offer big pay increases.
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After accounting for inflation, pay rose 0.9% in Q4 2022 compared to a year earlier, an improvement over previous quarters.