Reaction: The Job Market Slowed But Dodged a Recession in 2023
Public Data Commentary Julia Pollak Public Data Commentary Julia Pollak

Reaction: The Job Market Slowed But Dodged a Recession in 2023

Friday’s Jobs Report was mixed, with solid job gains (+216K) and wage growth (4.1% over the year) in the establishment survey, but weak employment growth (just +72K) and participation-related figures in the household survey. Factoring in downward revisions to the prior months’ figures, the 3-month average job gain was 165K, right in line with the 2019 average, suggesting that the labor market has come back to pre-pandemic normal.

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The Pandemic-Related Public-Private Sector Pay Gap is Finally Narrowing 
Public Data Commentary Julia Pollak Public Data Commentary Julia Pollak

The Pandemic-Related Public-Private Sector Pay Gap is Finally Narrowing 

According to today’s Employment Cost Index report, wage disinflation slowed, and so did real wage growth. Private sector wages and salaries rose 4.5% over the year, down only 0.1 percentage points from last quarter, and over-the-year real wage growth fell from 1.7% to 0.8% in Q3. Wage growth for public sector workers surged, however, after lagging behind since early in the pandemic.

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