Wage growth has slowed across major economies over the past six months, in a further sign that central banks are under increased pressure to begin cutting interest rates in the first half of the year.
Year-on-year growth in advertised wages and salaries stood at 3.8 per cent in the US in December following a steady two-year decline from a peak of 9.5 per cent in late 2021, according to a cross-country wage tracker published by the job search website Indeed.
Annual wage growth also stood at 3.8 per cent in the eurozone, down from a 2022 peak of 5.2 per cent, according to Indeed. Even in the UK — where wage growth has been stronger and more persistent — the median rate of pay cited in job ads was 6.6 per cent higher than a year earlier, down from a peak of 7.4 per cent in June.