Sluggish Continuation of US Wage Increases
Finance Wage Growth Slows in U.S. Amid Labor Market Stabilization and Sector-specific Demand Dynamics
According to the latest data and analysis from Indeed Hiring Lab, wage growth for finance roles in the U.S. has notably slowed compared to some other sectors. Cory Stahle, an economist at Indeed Hiring Lab, characterizes wage growth as "outpacing inflation, but not for everyone," signaling disparities across industries including finance.
The broader U.S. labor market shows overall resilience with steady job creation and low unemployment (4.1% in June 2025). However, wage increases have been uneven. Sectors such as healthcare, local government, and public education continue to see robust wage growth, while finance and similar professional roles experience anemic growth or stagnation in wages.
The slowed wage growth in finance roles can be attributed to several factors. Firstly, the U.S. job market is "staked down" but not immune to shocks, with solid payroll numbers but fewer growth "poles" supporting expansion. This stability and a lack of strong labor demand pressure limits upward wage pressure in finance.
Secondly, monthly job gains have decreased slightly over recent years, and labor force participation remains just below its recent peak. This moderates the competition for talent, reducing wage pressure in finance roles.
Lastly, finance roles may face relatively weaker hiring demand or increased candidate availability compared to hot sectors like healthcare. Indeed Hiring Lab notes a more "anemic" growth outside key sectors, which likely reflects less urgency to boost wages in finance.
Despite the slowdown in finance wage growth, it's important to note that wage growth continues to outpace inflation. For instance, inflation increased at a rate of 2.7% last month, according to the consumer price index.
In June 2023, wages for new job postings grew about 2.9% year over year, while wage growth for electrical engineers ticked up 6.3% year over year. Wage growth for banking and finance roles inched up 3.8%, and wage growth for legal and marketing roles increased by 5.1%.
Cory Stahle, senior economist with Indeed Hiring Lab, stated that the slowdown in wage growth is a reflection of basic supply and demand in the labor market. He added that the rapid wage growth of a few years ago is "definitively in the rearview."
In conclusion, the Indeed Hiring Lab’s latest insights confirm that wage growth in finance roles has significantly slowed compared to some other professions in the U.S., primarily due to labor market stabilization, tempered job growth, and sector-specific hiring dynamics.
- The growth in wages for finance roles, despite slower compared to other sectors, still outpaces the current inflation rate, as suggested by Cory Stahle's analysis.
- The reduced competition for talent and lower labor demand pressure contribute to the anemic wage growth observed in the finance sector, according to the analysis by Indeed Hiring Lab.
- Amid the labor market stabilization and sector-specific hiring dynamics, the growth in wages for finance roles is less robust compared to sectors like healthcare and public education.
