As employers continue to face a tight labor market, “wage inflation” and “job switching” continue to impact employers’ ability to recruit and retain employees. Recent quarterly data published by the Bureau of Labor Statistics (BLS) shows that total wage and benefits costs for employers in the Southeast rose by 5.8% from 2021 levels.
Additional data published by the Federal Reserve Bank of Atlanta showed that while overall total wage growth rose by 6.7% in July 2022, wage growth for “job switchers” grew by 8.5% compared to 5.9% for “job stayers” which is the largest gap in decades. The data underscores the challenge employers face in the current labor market as both job-seeking individuals and existing employees have high levels of leverage when negotiating wages or requesting raises, given the record number of job openings in the United States and South Carolina. “Job switching” remains high in both the U.S. and in S.C., with data showing that nearly 4.2 million U.S. workers left their jobs in July, and nearly 82,000 S.C. workers left their jobs in June – the second highest number on record.
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