Despite widespread expectations of a recession in 2023, the U.S. labor market has continued to show signs of strength. The unemployment rate in the U.S. is at its lowest level in more than half a century, and the economy has added jobs every month since December 2020. Despite this, job openings remain higher than pre-pandemic levels, while labor force participation remains lower.
These conditions have been a benefit to many workers. Overall tightness in the market, exacerbated by record high job turnover in the Great Resignation, has allowed many workers to seek higher wages. Workers’ average expected salary offer has increased from $53,676 at the outset of the COVID-19 pandemic to $61,187 now. And much of the strongest wage growth has occurred among lower-income workers, helping them close the gap with higher earners.
These trends stand in sharp contrast to what occurred over the last several decades. Since 1979, economic productivity in the U.S. increased significantly at the same time worker compensation growth lagged behind. While compensation for the typical nonsupervisory worker grew a modest 17.3% (after adjusting for inflation) during that time, overall economic productivity in the U.S. grew 64.6%. This significant difference suggests that while the economy continued to grow and become more productive, the average worker did not see a proportional increase in their compensation.
 |
However, managers’ and employees’ earning prospects can vary significantly by industry. Many of the top-earning employee occupations have typical wages that exceed even higher-paying manager occupations. Lawyers, judges, magistrates, and judicial workers have the highest median wage for employee occupations at $135,000, higher than all but four of the top manager occupations. Most of the top-paying employee occupations are found in science and engineering professions, where typical workers earn six figures.
 |
Differences between…
Read the full article here
