US workers who changed jobs in March saw their wages rise sharply, signaling that the Fed will not have an easy time in the final hurdle to get inflation under control. Market analyst Philip Marey of Rabobank said this to ABM Financial News on Wednesday.
Salaries rose by 5.1 percent on an annual basis, after an increase of 5.1 percent a month earlier, ADP figures showed.
Employees who changed jobs improved 10.0 percent, a sharp acceleration in the uptrend, according to Marey. The analyst pointed to the increase in hourly wages in January by 7.2 percent, the acceleration to 7.6 percent a month later and in March to the aforementioned 10.0 percent. “It illustrates the stiffness of US core inflation. Last Friday, the PCE for February underlying core inflation also still showed a point of concern for the Fed,” said the Rabobank market analyst.
In the better than expected job growth of 184,000, Marey saw a major role for the leisure sector, which added 63,000 jobs. Construction was number two among the sectors that contributed to growth, with the creation of 33,000 jobs.
