Annual wage gains are not expected to improve in the near future for the private sector, according to the preliminary second-quarter Wage Trend Indicator by Bloomberg BNA.
The index dropped to 98.68 in the second quarter versus 98.73 in the first quarter, the analysis finds. The range of the analysis has continued on a narrow path the last two years, moving between 98.47 and 98.75.
"The labor market has seen some improvement and increased stability lately, but it's not enough to absorb the many people who are still out of work," said economist Kathryn Kobe, a consultant who maintains and helped develop Bloomberg BNA's WTI database.
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"With the federal budget sequester in place and employers uncertain about the costs of the Affordable Care Act, I don't anticipate the pace of hiring will become stronger anytime in the near future."
According to Kobe, little to no change is anticipated regarding the yearly pace of private-sector wage gains from the first quarter's 1.7 percent increase, which was measured by the Department of Labor's employment cost index. The analysis only studies wage growth's direction rather than the magnitude.
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