Labor Market Strength Hides Some Industry Struggles

Jun 22,
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This article examines the current state of the labor market and how small changes in monthly labor reports can have an outsized impact on certain industries. Despite an overall market strength reflected in a low unemployment rate and rising wages, some industries are still in the midst of a struggle with low growth and flat wages. In particular, retail and leisure-and-hospitality are still experiencing lower-than-expected job growth when compared to other labor sectors. With wages having grown by only 2.6% in the leisure-and-hospitality industry and the retail sector lagging even further behind, these industries remain vulnerable to headwinds in the labor market.