Discussion Paper

Is Wage Growth Normalizing? What Fifth District Businesses Are Saying About Wages


Abstract: In the past few years, firms across the nation have reported increased wages due, at least in part, to a supply of labor that cannot keep up with robust demand. Last July, we wrote about how Fifth District firms reported notable acceleration in the growth rates of both realized and expected wages. More recently, wage growth has declined, and a rising share of firms expect their wage growth for 2024 to be "about normal." However, wage growth remains above pre-COVID-19 levels. Our business surveys suggest that wage growth might remain elevated for some time.

Keywords: wage growth; business survey; labor market; Fifth District;

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Provider: Federal Reserve Bank of Richmond

Part of Series: Regional Matters

Publication Date: 2024-02-28