Pay for new hires is falling in some blue-collar jobs
Published On Sep 1, 2024, 6:40 AM
A recent report indicates that pay for new hires in several blue-collar job sectors has significantly decreased. Specifically, salaries in retail have fallen by 55.9%, agriculture by 24.5%, manufacturing by 17.3%, and transportation by 13.9%. In contrast, wages for white-collar jobs have generally risen. Experts attribute this pay decline to economic normalization post-pandemic and changes in the hiring landscape, leading to employers having more leverage over job seekers. Additionally, there are fewer signing bonuses and attractive counteroffers being made to job candidates.
Stock Forecasts
XLI
Negative
The declining wages in blue-collar sectors may suggest potential issues for companies reliant on lower-wage labor, which could affect their profit margins. Conversely, companies in the white-collar sphere may continue to see growth due to rising wages and demand for skilled labor.
XLP
Negative
The trend of decreasing wages in blue-collar jobs could indicate reduced consumer spending in those demographics, potentially impacting demand for goods and services in sectors that rely on these workers.
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