(The Hill) - Wage growth is slowing down for all workers following the booming recovery from the COVID-19 pandemic, but it’s dropping at the fastest pace for workers at the bottom end of the income spectrum.
That’s a sharp reversal from the postpandemic recovery era, when the lowest paid workers were seeing the fastest wage growth, something economists termed “wage compression.”
It also comes as these workers could face more pressure from tariffs, which are expected to raise costs on a number of goods.
The trend of wage compression has inverted almost entirely. The poorest workers are now seeing the slowest levels of wage growth while the highest earners are seeing the fastest.
Median annual wages for people making $806 a week or less increased at an annual rate of 3.7 percent in July,