Summer slows as wages rise

The late summer downturn is underway, with companies that had taken on staff in the spring now downsizing. However, workers' wages have continued to rise as Main Street struggles to retain good talent amid an ongoing labor shortage.

Most hourly workers in small businesses are happy with their jobs and pay, as new priorities such as schedule flexibility and team relationships top the list. Workers are less optimistic about future prospects as inflation fears rise.

NEW AND REMARKABLE:

High street wages continued to rise in August, despite pay cuts in big industries like tech and transportation, showing that small businesses are still struggling with a labor shortage . Hospitality saw only a slight drop in the number of staff working as shifts shrunk towards the end of the summer while still responding to higher demand than in previous years. The steady rise in summer wages has impacted workers' priorities, with workers now valuing flexibility and control of schedules and team relationships over wages. Inflation remains a major concern for hourly workers (more than 3 times higher than job loss). Longer working hours are also a growing concern.

The summer slowdown has begun, consistent with historical seasonal patterns.

The number of employees working and the hours worked decreased from July at the same rate as in previous years.

Working employees

(Monthly variation of the 7-day average, compared to January of the declared year)

Hours worked

(Monthly variation of the 7-day average, compared to January of the declared year)

Data compares 7-day rolling averages for weeks including the 12th of each month; April data includes the following week to take into account the Easter holidays. Source: database data.

The impacts of the July thermal dome have lessened.

Staff reductions are no longer concentrated in the South.

Released by MSA

Month-to-month change in basic economic indicators, by metropolitan statistical area

Note: August 6-12 vs. July 9-15. Source: database data

However, the Lahaina Fire affected much of Maui's main street.

The devastating fires of August in Lahaina destroyed local businesses and forced many others to close and focus on safety and recovery. Outside of Lahaina, calls for continued tourism in outlying towns, like Kihei and Wailea, are encouraging visitor traffic for local businesses trying to keep their doors open and their crews well-paid.

Working employees

(7-day average monthly change, compared to January 2023)

Hours worked

(7-day average monthly change, compared to January 2023)