Companies facing the US labor shortage are simply deciding to pay workers more.
Average wages rose $0.15 in May. Together, the April-May jump is the largest since 1983.
Job openings sit at record highs, and Americans are demanding higher pay before rejoining the workforce.
For more than two months, businesses have faced difficulties in hiring. Data published Friday suggests employers are picking the simplest solution: paying workers more.
Average hourly earnings jumped $0.15 in May to $30.33, the Bureau of Labor Statistics said in its monthly jobs report. The increase is roughly twice as large as those seen before the pandemic and follows a $0.21 gain in April.
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25 GOP governors have decided to end federal unemployment benefits early amid the perception that ongoing labor shortages mean ample work opportunities.
But workers may not be returning as expected due to weak business conditions and health concerns.
Benefits will also be cut as more bills are due and consumer goods cost more.
Much ink has been spilled on what, exactly, is going on with employment and the so-called labor shortage. As the country reopened, April s anemic jobs report came as a shock.
GOP governors in 25 states reacted by prematurely pulling the plug on federal unemployment benefits, citing beefed-up UI as a disincentive for returning to work. There s also the ongoing perception that a labor shortage means ample opportunities for work are readily available.