Timothy Smeeding, a professor of public affairs and economics at the University of Wisconsin-Madison, told Wisconsin Public Radio’s “Central Time” that the tight labor market has helped low-wage workers the most.
“The good news is that there’s a lot of demand for low-skilled workers beyond bars and restaurants now (with) the expansion of infrastructure and construction,” Smeeding said.
Menzie Chinn, professor of public affairs and economics at UW-Madison, said that wage gains haven’t been evenly distributed by economic sectors. He noted leisure and hospitality workers have seen the largest wage gains since the pandemic, while wages for workers in all other non-farm sectors have seen slower wage growth.
“As far as we can tell, (leisure and hospitality workers) are beating inflation, at least in terms of the wage rate,” he said. “Now, I don’t know how many hours they’re working, and it’s going to be spotty because not everybody is going to be in a restaurant that saw their wages rise.”
Beyond wages, Laura Dresser, associate director of the COWS economic think tank at UW-Madison, said the tight labor market also gives workers more leverage to negotiate with their employers for more flexible hours or to confront workplace harassment.
“I think there’s a lot of evidence that in this tight labor market, low-wage workers especially have found ways to ask more from work to see their own value,” she said.