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.