The 3 sectors where wage growth is still outpacing inflation

Published: Thursday, June 11, 2026 at 5:20 pm

Wage Growth Outpaces Inflation in Key Sectors Amidst Economic Pressures

Despite a challenging economic climate where inflation is impacting consumer spending power, new data reveals that wages in three specific sectors are continuing to outpace the rising cost of living. Inflation in May surpassed 4% for the first time since 2023, exceeding private-sector wage growth, which stood at 3.4%. This disparity highlights the financial strain many Americans are experiencing.

The information sector, known for its generally higher wage levels, has seen wage growth more than a percentage point above inflation. However, this positive wage trend is accompanied by a significant employment decline. Employment in this sector has fallen 11% from its peak in late 2022 and saw a 1% decrease since January. Economists suggest that workforce reductions may be disproportionately affecting lower-wage workers, thereby elevating the average hourly earnings of those remaining.

In contrast, the private education and health services sector, while exhibiting the slowest wage growth among major industries, has experienced the most substantial job gains. Healthcare alone accounted for a significant portion of the 610,000 net jobs added in this combined sector. Experts note that while job growth is positive, sluggish wage increases in these areas make it difficult for workers to keep pace with inflation.

The utilities and construction sectors are the other two areas where wage growth is currently exceeding inflation. This trend is attributed to strong employer demand for labor and a potential shortage of available workers. Companies in these sectors are reportedly facing challenges in finding sufficient staff, leading them to offer higher wages to attract and retain talent. Factors such as increased electricity demand and the construction of data centers are cited as contributors to the growth in the utilities and construction industries.

It is important to note that even in sectors with wage growth exceeding inflation, not all workers are necessarily benefiting equally. Some individuals may not have received annual raises, while others may have received increases that still fall short of keeping up with the overall rise in prices.

BNN's Perspective: The current economic landscape presents a complex picture for American workers. While it is encouraging to see wage growth outpacing inflation in certain sectors, the broader trend of inflation exceeding average wage increases underscores the persistent financial pressures faced by many households. The divergence between sectors with high wage growth but declining employment and those with job growth but lagging wages highlights the uneven distribution of economic benefits and the ongoing need for policies that support both job creation and meaningful wage increases across the economy.

Tags: wage growth, inflation, information sector, private education, health services, utilities, construction, employment, average hourly earnings, labor demand, labor supply

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