What is the trend in wage growth since 2022?

• A. Rising
• B. Stable
• C. Volatile
• D. Slowing

Answer: (D)

Wage growth is about how fast pay increases from year to year. Since 2022, the pace of those increases has slowed. In 2022, tight labor markets and strong demand pushed wages up quickly. After that, conditions cooled a bit and employers faced less pressure to raise pay as rapidly, so the rate at which wages rise has diminished. So, wages are still rising, but more slowly than before, which is why the trend is described as slowing.

This isn’t about wages falling or staying exactly the same; it’s about the speed of increases getting more gradual. The other options describe a faster rise, no change in the rate, or large fluctuations, none of which best match the observed pattern of wage growth easing after 2022.