A new presentation, "Disaggregating wage growth: Trends and considerations," looks below the surface of trends in wage growth, highlights important factors to consider when interpreting recent findings, and illustrates the value of using a wide range of indicators to paint a comprehensive picture of current labour market conditions.
Interpretation of wage trends must take into consideration a significant shift in employment from lower-wage to higher-wage industries which has occurred over the past three years, due in part to the COVID-19 pandemic. From April 2019 to April 2022, for example, employment decreased by 13.7% in accommodation and food services and increased by 16.8% in professional, scientific and technical services (Chart 3 in the presentation).
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