Wages Bounce Back
A construction worker uses a measuring tape while building a wall of a home in Doral, Fla., on Aug. 12.
Photographer: Mark Elias/Bloomberg
America may finally be getting a decent raise. A range of data suggests the demand for labor has risen enough to compel some employers to pay more to retain or hire workers. Although the gains are modest, they should broaden and speed up as unemployment falls further and competition intensifies for quality labor. “Wage growth is slowly accelerating,” says Mark Zandi, chief economist at Moody’s Analytics. “By the end of next year, we should be closing in on 3 percent growth,” compared with the average 2.2 percent pay raise that’s been prevalent throughout most of 2015.
According to data from the U.S. Bureau of Labor Statistics, construction is showing the strongest job growth for the 12 months through October this year, up 3.8 percent, compared with 2 percent across all categories. Professional services—which includes jobs in architecture, computer systems design, and legal services—comes in second with 3.5 percent growth, the data from the BLS show.