Indeed, the world’s number one job site, today released new data on wages advertised on Indeed job postings in the US from the Indeed Wage Tracker indicating a substantial slowdown in posted wage growth from its peak of 9% year-over-year growth in March 2022 to 6.5% year-over-year growth in November 2022. Despite the decline, posted wage growth remains elevated from pre-pandemic rates of 3.1% annual growth in November 2019. The Indeed Wage Tracker measures the real time temperature of the market for employers looking to hire new workers1, and may be a leading indicator of broader measures of wage growth.
“New data from the Indeed Wage Tracker indicates that wage growth is starting to slow down after a period of rapid acceleration,” said Nick Bunker, Director of Economic Research for North America at Indeed. “The vast majority of job sectors had slower increases in posted wages in November than they did six months prior. On its current trajectory, the Indeed Wage Tracker would return to its pre-pandemic pace of 3% to 4% year-over-year growth by the second half of 2023. Our measure of wage growth has already peaked, but we are in the early innings of this wage slowdown.”
The decline in posted wages reflected in the Indeed Wage Tracker are also seen across the broader labor market; only 18% of occupational categories saw their posted wage growth hold steady or increase in the six months from May 2022 to November 2022. In stark contrast, 93% of occupational categories observed steady or increasing gains in the same six month time period the year prior (May 2021 to November 2021).
Data from the Indeed Wage Tracker suggests that wage growth for job switchers will continue to decline, but the amount of time it takes for a slowdown in posted wage growth to flow through to job switcher wage growth is about three months. Posted wage growth may return to its pre-pandemic pace late next year on its current trajectory. However, overall wage growth, which trails gains for new hires, may not normalize until well into 2024.
Updates to the Indeed Wage Tracker will be released monthly here.
More information about the Indeed Wage Tracker, its methodology, and additional commentary from Indeed’s economists can be found here.
About Indeed
More people find jobs on Indeed than anywhere else. Indeed is the #1 job site in the world (Comscore, Total Visits, September 2021) and allows job seekers to search millions of jobs in more than 60 countries and 28 languages. Over 3 million employers use Indeed to find and hire new employees. More than 300 million users 2each month search for jobs, post resumes, and research companies on Indeed, and Indeed delivers 2.5X more hires than other branded job sites combined (Among BreezyHR clients, Sources of Hire Report 2021, U.S.). For more information, visit indeed.com.
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1 Indeed Wage Tracker measures the growth in wages and salaries advertised in Indeed job postings
2 Internal Data, avg. monthly unique visitors Apr. – Sept. 2022
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