Wisconsin saw its largest year-over-year increase in average hourly wages since December, according to the latest data from the U.S. Bureau of Labor Statistics.
The average hourly wage across all private sector jobs was $31.02 in June, up 5.22% from a year ago. The increase was the 15
th largest in the country.
The gains come as the state's unemployment rate
ticked up to 2.5%, still near a record low, and the labor force participation rate increased for a fourth straight month.
Wisconsin’s wage growth for the month was a departure from the recent trend, which has seen increases of 2.5% to 3.8% since the start of the year. For the entire first half of the year, the state averaged a 3.6% year-over-year increase, a growth rate that ranks 36
th in the country.
A year ago, Wisconsin was seeing strong wage growth, averaging 6.9% for the first half and 7.3% in the second quarter of 2022. That quarterly growth rate ranked 12
th in the country.
The early 2022 wage gains were driven by the leisure and hospitality sector, which averaged a 10.4% increase for the first half of last year. Trade, transportation and utilities, up 8.1% on average, and professional and business services, up 7.2% on average, were also strong gainers.
Leisure and hospitality continued to see strong growth, averaging 8.3% increase in the first half of the year, including 7.9% in June. The sector’s average hourly wage is now $19.04, up from $17.65 a year ago.
The manufacturing sector did not see the same level of wage growth as the rest of the state in first half of 2022, averaging an increase of 3.6%. That’s changed this year with the sector’s wage growth outpacing the state. Manufacturing averaged a 5.3% increase for the first half of the year, including 7.9% in the second quarter and 8.2% in June.
Production workers specifically averaged a 6.9% increase for the first half of the year, up from 6.1% last year.
However, the average number of hours worked per week by production workers has fallen, dipping below 40 each of the past three months and reaching 39.1 in June. It is the lowest reading since the initial onset of the COVID-19 pandemic. Outside of 2020, the second quarter weekly average of 39.47 hours is the lowest three-month stretch since the start of 2010.
The reduction in hours has blunted the impact of wage gains for production workers. The average weekly wage for the group was up 5.5% on average for the first half of the year, including 3.6% in June.
