Blue-Collar Wages Tumble as Hiring Slows Across Key Sectors

Data from ZipRecruiter reveals a significant decline in wages offered to new hires in several blue-collar sectors this year, with retail taking the hardest hit. Retail wages have plummeted by 55.9%, followed by notable drops in agriculture (-24.5%), manufacturing (-17.3%), and transportation (-13.9%).

According to Pollak, this wage decline is partly due to the post-pandemic economic normalization and mean reversion. However, a more pressing factor is the steep hiring slowdown in the private sector, with healthcare being the notable exception. As demand for workers cools, especially in these vital industries, employers are scaling back on the attractive pay packages that were once essential to lure talent during the labor shortages of the past few years.

This trend underscores the broader challenges facing the labor market as it adjusts to a new economic reality.