Small business wage growth slows to 2.89% in August, indicating a cooling labor market.
A Paychex Small Business Employment Watch report indicates that while labor costs for small businesses are still high, wage growth is slowing. In August, hourly earnings growth for workers at firms with 50 employees or fewer fell to 2.89%, the lowest since January 2021. This trend suggests a cooling labor market, potentially leading the Federal Reserve to consider lowering interest rates. However, some small business owners have yet to see wage growth moderation.
September 10, 2024
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