In June, wage growth for job stayers increased at the slowest rate in nearly three years, with a 4.9% increase from the prior year, according to ADP data. This is a decrease from the 5% growth seen in the previous month and marks the slowest growth since August 2021.
In June, wage increases for job changers slowed for a third straight month. Wages for workers who changed jobs increased 7.7% year over year, down from 7.8% the month prior and significantly lower than the 16.4% peak in June 2022.
ADP's chief economist, Nela Richardson, said that the current wage growth regime is different from the past, with slower growth for both job stayers and job changers. She questioned how low the growth would get and whether it would return to pre-pandemic levels.