The job market is still tilted in workers’ favor.

Real wages also grew. To some extent, productivity growth offsets the inflationary effect of pay gains.

Average wage growth has slowed in recent months, though according to the May jobs report, it’s still ahead of inflation.

Wages were running hot two years ago, rising about 6% annually. Things have cooled since then, with April average wages up just under 4%.

Private employers added 140,000 jobs in February and January’s job openings didn’t budge — though they were down from mid-2023.

It means interest rate hikes are having the intended effect. Tapering consumer demand and high labor costs are weighing on earnings.

But recent union victories may keep upward pressure on wages.

And that would mean your paycheck’s purchasing power would be getting a boost relative to inflation.

Experts are predicting a slight decrease in wage growth, a drop that get us closer to pre-pandemic rates.

That could be a sign that the Fed’s interest rate hikes are working and the economy is cooling.