Welcome to the year of wage hikes

In the past three months, rank-and-file employees have seen some of the fastest wage growth since the early 1980s, as employers desperate to get workers back into restaurants, ballparks and plants are offering perks such as more time off, free food and higher pay to entice them to return. The pay hikes are reflected in the latest jobs report, which showed that the U.S. economy added 850,000 jobs in June, the strongest gain since last summer. The unemployment rate rose slightly to 5.9 percent. Much of the hiring occurred in the restaurant, hotel and entertainment sectors that have seen the fastest wage gains. Average pay in the restaurant industry is now above $15 an hour for the first time. In many ways, this is a story of basic supply-and-demand forces playing out in the economy. There’s a lot of demand for workers right now, and not a large supply of people ready to go back to work. Many of the unemployed are still dealing with health issues or child-care problems, or want to reinvent themselves with a career change as the pandemic wanes. Plus, ample government aid has given many workers enough of a savings cushion to remain jobless a little longer to see how their situation pans out, a labor force luxury that Republicans have roundly criticized.
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