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Wages jump by the most on records dating back 20 years

In this Sept. 22, 2021, file photo, a hiring sign is placed at a booth for Jameson's Irish Pub during a job fair in the West Hollywood section of Los Angeles. California's historic hiring slowed down in September as the state added 47,400 new jobs. California has been averaging more than 100,000 new jobs each month since February. New data released Friday, Oct. 22, 2021, by the U.S. Bureau of Labor Statistics shows California is now tied with Nevada for the highest unemployment rate in the country at 7.5%. (AP Photo/Marcio Jose Sanchez, File)
In this Sept. 22, 2021, file photo, a hiring sign is placed at a booth for Jameson's Irish Pub during a job fair in the West Hollywood section of Los Angeles. California's historic hiring slowed down in September as the state added 47,400 new jobs. California has been averaging more than 100,000 new jobs each month since February. New data released Friday, Oct. 22, 2021, by the U.S. Bureau of Labor Statistics shows California is now tied with Nevada for the highest unemployment rate in the country at 7.5%. (AP Photo/Marcio Jose Sanchez, File) In this Sept. 22, 2021, file photo, a hiring sign is placed at a booth for Jameson's Irish Pub during a job fair in the West Hollywood section of Los Angeles. California's historic hiring slowed down in September as the state added 47,400 new jobs. California has been averaging more than 100,000 new jobs each month since February. New data released Friday, Oct. 22, 2021, by the U.S. Bureau of Labor Statistics shows California is now tied with Nevada for the highest unemployment rate in the country at 7.5%. (AP Photo/Marcio Jose Sanchez, File)

By Times Free Press Staff 2 min read

WASHINGTON (AP) – Wages and salaries jumped in the three months ending in September by the most on records that date back 20 years as companies are forced to offer higher pay to fill a near-record number of available jobs.

Pay increased 1.5% in the third quarter, the Labor Department said Friday. That’s up sharply from 0.9% in the previous quarter. The value of benefits rose 0.9% in the July-September quarter, more than double the preceding three months.

The data further illustrates the rising leverage workers have gained in the job market this year and they are commanding higher pay, more benefits, and other perks like flexible work hours. With more jobs available than there are unemployed people, government data shows, businesses have been forced to work harder to attract staff.

Higher inflation is eating away at some of the wage increases, but overall pay is keeping up with rising prices. The 1.5% increase in wages and salaries in the third quarter is ahead of the 1.2% increase in inflation during that period, economists said.

However, compared with a year ago, it’s a closer call. In the year ending in September, wages and salaries soared 4.2%, also a record gain. But the government also reported Friday that prices increased 4.4% in September from year earlier. Excluding the volatile food and energy categories, inflation was 3.6% in the past year.