September jobs report: Wage growth plays key role in inflation analysis

September jobs report: Wage growth plays key role in inflation analysis

Investors will be keeping a close eye on jobs data for September to be released this week.

The labor market has remained strong despite companies cutting their workforce and slowing down hiring.

This development comes amid the Federal Reserve’s determination to fight inflation.

According to the August jobs report, the average hourly wages rose 5.2% over the past 12 months.

It is significantly down from a 2022 peak growth rate of 5.6% in March.

The latest government report says Personal Consumption Expenditures (PCE) rose 6.2% from a year ago in August.

Meanwhile, even with the rise, wages are not keeping pace with the increase in consumer prices.

After Covid-19, labor shortages has shifted power from employers to employees when it came to worker pay.