The job market is growing. Last month, the unemployment rate fell to its lowest percentage in a decade β 4.4%, according to the Department of Labor. Because of this, itβs harder to fill more open jobs, and workers are more willing to make shifts in their careers. There are currently 5.7 million job openings in America, but the pace of hiring has slowed. And that means potentially more money in your own paycheck. Why?
Because of the difficulty employers are facing in finding new employees and retaining current employees, many are opting to boost wages and benefits to lure and keep their staff. Smaller companies are facing the greatest challenging finding new talent, making these companies more likely to offer promotions and raises. Overall, as the jobless rate goes down, wages go up.
The rate could be higher, according to the DOL, because factoring in employers who have permanently left the workforce β i.e. retirees β holds back stronger gains. As more and more baby boomers reach retirement age, this may affect the rate of wages continuing to go up, because the other labor participation pool will bottom out. But for now, expect more in a paycheck.
What could you do with a wage increase? Use our calculators to imagine scenarios now.