How lower-paid workers are getting their biggest pay raise in years

TL;DR

Job switchers, primarily lower-paid hourly workers, saw their fastest wage growth in over three years in July.
The three-month moving average wage increase for job changers reached 12.5% in July.
This trend is contributing to a narrowing pay gap between lower-income and higher-income workers.
Lower-income households' after-tax wages rose 4.7% year over year in August, compared to 3.5% for higher-income households.
White-collar workers in industries susceptible to AI automation are showing lower quit rates and practicing "job-hugging" due to job insecurity and increased competition.
Employers are facing skills mismatches, giving job seekers more bargaining power and incentivizing higher pay.
The buildout of AI data centers is also contributing to higher pay for some job switchers in related construction and technical roles.

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