Workers lose ground on starting pay | The National Observer | Daily Edition | April 20
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Small businesses are getting some relief on the hiring front as?newly employed workers lose ground on starting pay, reports Andy Medici of?The Business Journals.
“This cooling has come both as business demand for new workers has slowed and as?more potential workers?are entering the labor force."
In March, starting pay among newly hired workers at small and midsize businesses was 7.5% lower than pay for those hired last year, according to data from payroll and benefits provider Gusto Inc. Total employment was up 0.5% in March, though that's slower growth than the 1.8% seen a year prior. The pay decline is yet another sign of caution from employers as they face down economic uncertainty.
“This cooling has come both as business demand for new workers has slowed and as?more potential workers?are entering the labor force," said Gusto economist Luke Pardue.
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Not all industries saw the declines, however. Starting pay for jobs in tourism was up 24% over the same time last year, up 9% for legal jobs and up 6% for transportation jobs compared to a year ago.
The biggest drops in starting pay were concentrated in industries that are particularly affected by the Federal Reserve’s efforts over the last year to cool inflation?and the job market?by repeatedly hiking interest rates. That includes the insurance industry (starting pay down 9%), real estate (down 8%) and finance (down 5%).
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