See the U.S. cities where worker pay is rising fastest

Worker pay is rising much faster in some U.S. cities than in others, with certain metropolitan areas recording gains that outstrip inflation. Nationwide, gross pay increased 4.7% in August from a year earlier, while base pay rose by an average of 3.2%, according to ADP Pay Insights.

ADP data points to several conditions shared by the metros with the fastest wage growth: healthy job creation, a shortage of workers and high employee turnover. Cities with large manufacturing and financial-services sectors also often saw stronger gains.

“Sometimes a labor supply shortage, caused by an aging workforce or skills mismatch, can drive up wages,” ADP lead data scientist Liv Wang told CBS News.

The national figures showed a more moderate trend. Wages rose at an annual rate of 3.1% in August, the lowest pace since May 2021, even as payroll gains exceeded economists’ forecasts, the Department of Labor said. ADP tracks private-sector employment, while the government’s nonfarm payroll report provides a broader view that includes public-sector jobs.

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Sometimes a labor supply shortage, caused by an aging workforce or skills mismatch, can drive up wages.