US Adds More Jobs, But Salaries Rise on Slowest Pace

Nuclear power plantDespite the creation of more jobs, salary growth in the US increased at the slowest pace in July over the last three years.

Wages nationwide increased 1.2% in the month to a median annual base pay of $51,120 compared to last year. The figure, however, fell from June’s 1.5% increase and from the peak growth of 3.1% in January. The most affected include middle-class workers, such as financial advisers and office managers.

Energy Employment

As job growth in the US continues, the energy sector particularly recorded an increase in employment. In 2016, jobs in the Traditional Energy and Energy Efficiency sectors rose almost 5% in 2016 with the addition of more than 300,000 new jobs, roughly 14% of all created jobs, according to the 2017 US Energy and Employment Report.

Today, these sectors employ approximately 6.4 million Americans. Aside from salaries, job applicants should know that there are other forms of compensation for those working in the energy industry, including Energy Employees Occupational Illness Compensation Program Act or EEOICPA benefits.

Job Statistics

Factors such as a 4.3% jobless rate, the creation of 222,000 jobs in July, and 5.7 million vacancies, still failed to uplift wages. In terms of salary growth, recruiters emerged as the employees with the fastest pace of pay increase in July year over year, up 6.5% to a median base pay of $51,050. Baristas and restaurant cooks followed with a 6.4% and 5.8% salary growth to $24,336 and $28,696, respectively. While pay growth has been slow in middle-class jobs, the wage increase is rising for those on the top- and bottom-tier employment sectors.

The employment trend in the US seems to be on neutral ground, with slow wage growth countering the increase in jobs. It is safe to say that we could expect either improvements or a further decline in wages in the future. Let's just hope things will get better soon.