Work shift: 9-5 job growth, slower wage increases, and more unemployment claims
Work shift: 9-5 job growth, slower wage increases, and more unemployment claims
Work shift: 9-5 job growth, slower wage increases, and more unemployment claims
![](/sites/default/files/styles/jpg_png_optimize/public/image/2024-07/MC-ART-WF-3470118-0724_739x416_GettyImages-1206240024.jpg?itok=o6E6zNoY)
In the country’s 42nd consecutive month of job growth, employers across the United States added 206,000 jobs in June, charting a path of resilience.1 Still, recent data signals some cooling in the economy and may offer clues into what working Americans can expect in the labor market going forward.
Growth in moderation
American workers continue to see progress in their wages, with June’s average hourly earnings standing at $35,2 a 3.9% increase over last year, outpacing the 3% increase in consumer prices.3 It’s the slowest annual wage growth in three years – and a small slice of the $240 that Americans say an hour of their time is worth, on average, according to Empower research.
According to another Empower study, Americans say they an average salary of $284,167 to be happy. That figure changes by generation, with Millennials putting the figure at $525,000, Gen Z at $128,000, Gen X at $130,000, and Boomers at $124,000.
Percentage change in earnings and inflation since November 2019
Any relief from sticker shock is top of mind for consumers, with 76% of Americans concerned about inflation this year, according to Empower research.
Gig work cools off
In the pandemic era, gig work reached its heyday, as demand for deliveries soared. In April 2022, employment hit a record high of 3.2 million, but the trend is starting to come down to earth.4 This June, total employment of 2.7 million in the temporary help services sector hit its lowest level seen since November 2013.
Those looking for work may also see a different landscape, as the Labor Department is seeing an uptick in people opening new claims for unemployment benefits.5 Despite June’s unemployment rate of 4.1% showing a just slight increase over May’s 4%, it’s still the highest rate Americans have faced since November 2021.
The callback to 2021 also takes people’s personal finances into account: During the pandemic, Americans had a chance to bolster their savings as daily expenses dropped – to the tune of $2.1 trillion, it turns out.6 However, that financial buffer looks to be drained; estimates from the San Francisco Fed found those excess savings had been spent as of March this year.
Being diligent about a household budget and prioritizing a savings safety net could be good money moves, as Empower research found that 37% of Americans couldn’t afford to pay an emergency expense over $400.
Looking ahead
With the job market showing a slower-but-still-steady pace and inflation easing, the Fed’s benchmark interest rate could be in flux in the coming months, which could have a domino effect on consumer spending and lending. The rate has been holding around 5.3%, the highest level since 2001,7 and any changes to the macro economy could open new paths for consumers and their finances.
While the cost of goods can be a day-to-day stressor, workers look to take any paycheck momentum and ultimately come out on top: Empower research found that 58% of people believe they will continue to make more money this year.
Get financially happy.
Put your money to work for life and play.
1 New York Times, “U.S. Job Growth Extends Streak, but Signs of Concern Emerge,” July 2024.
2 Bureau of Labor Statistics, “Employment Situation Summary,” July 2024.
3 CNBC, “Inflation falls 0.1% in June from prior month, helping case for lower rates,” July 2024.
4 USA Today, “Temporary worker drop may be signaling slowing economy,” July 2024.
5 NBC News, “Employers added 206,000 jobs in June as sturdy labor market gradually cools,” July 2024.
6 CNN, “Americans have spent their savings. Economists worry about what comes next,” May 2024.
7 Wall Street Journal, “Milder Inflation Opens Door Wider to September Rate Cut,” July 2024.
RO3721859-0724
The content contained in this blog post is intended for general informational purposes only and is not meant to constitute legal, tax, accounting or investment advice. You should consult a qualified legal or tax professional regarding your specific situation. No part of this blog, nor the links contained therein is a solicitation or offer to sell securities. Compensation for freelance contributions not to exceed $1,250. Third-party data is obtained from sources believed to be reliable; however, Empower cannot guarantee the accuracy, timeliness, completeness or fitness of this data for any particular purpose. Third-party links are provided solely as a convenience and do not imply an affiliation, endorsement or approval by Empower of the contents on such third-party websites.
Certain sections of this blog may contain forward-looking statements that are based on our reasonable expectations, estimates, projections and assumptions. Past performance is not a guarantee of future return, nor is it indicative of future performance. Investing involves risk. The value of your investment will fluctuate and you may lose money.
Certified Financial Planner Board of Standards Inc. (CFP Board) owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design), and CFP® (with flame design) in the U.S., which it authorizes use of by individuals who successfully complete CFP Board's initial and ongoing certification requirements.