What trend is described for wage growth since 2022, and what happened to the job switchers’ premium?

• A. Unemployment has been rising since 2022, and the job switchers premium shrank to 1.9%.
• B. Wage growth has been rising since 2022, and the job switchers premium grew to 2.5%.
• C. Wage growth has been slowing since 2022, and the job switchers premium shrank to 1.9%.
• D. Wage growth has been slowing since 2022, and the job switchers premium remained at 1.9%.

Answer: (C)

Wage trends and the payoff for switching jobs are interrelated in the labor market. Since 2022, wage growth has been slowing rather than rising. This signals that overall wage increases have cooled as the job market normalizes. At the same time, the extra compensation you can gain by jumping to a new employer—the switchers’ premium—has declined, reaching 1.9%. So the best description is that wages are climbing more slowly and the incentive to switch jobs has fallen to 1.9%. The other options imply either wages are rising or the premium stayed the same, which doesn’t match the described slowdown and reduction.