| The Workplace Advisors
The US labor market continues to show resilience as we enter 2025, with strong job growth and wages outpacing inflation. Here are some key data points we are tracking:
The US Department of Labor (USDOL) reports that 256,000 new jobs were added to the economy in December 2024. Healthcare (+46,000 jobs) and retail trade (+43,000 jobs) were the sectors with the most job growth.
If you employ entry-level workers, these numbers are important. Both healthcare and retail trade also employ large numbers of entry-level employees. In addition, undocumented immigrants are often likely to work in entry-level positions in construction, food service, housekeeping, and agriculture. If job growth continues and the pool of undocumented workers shrinks, recruitment for entry-level employees could become a major challenge in 2025.
The USDOL also reports that the Employer Cost Index of total compensation increased by 3.9% during the first 11 months of 2024. Wages increased by +3.9% during this period; benefit costs increased by +3.7%.
Salary increase projections for 2025 are similar to 2024 actual increases. The Conference Board and World at Work forecast increases averaging 3.9%; the Society for Human Resources Management forecasts a lower amount of 3.5%.
If you want to understand the impact of these trends on your workplace in the year ahead, our compensation expert, Susan Palé, is ready to provide personalized guidance. Reach out; we'll help you turn these insights into strategic workforce decisions.
Independent Insurance Agents of Virginia