Companies Are Hitting a Wall: Danielle DiMartino Booth

Here’s one more reason to cling to a steady job: It pays to stay.

Typically workers who snag a new position see higher pay bumps than those holding down the same job. But in February, median wage growth of 4.4% for job stayers surpassed a 4.2% gain for job switchers, according to data from the Federal Reserve Bank of Atlanta.

The change, as measured by a three-month moving average, is yet another sign of a softening labor market. For the past year, employers have been slashing jobs over concerns about inflation, slowing economic growth and interest rates. Layoffs at major tech and financial firms have left many white collar workers clinging to their jobs. And now an oversupply of job seekers means workers are having to settle for smaller pay bumps, said Peter Cappelli, a professor of management at The Wharton School of the University of Pennsylvania.

Danielle DiMartino Booth, CEO and Chief Strategist at QI Research, explains why the US central bank and Chairman Jerome Powell may be forced to rethink their near-term monetary policy strategy as both labor market and consumer spending data look to be pointing toward a US recession. Danielle speaks with Paul Sweeney and Jess Menton on Bloomberg Radio.

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