How the Wage-Price Gap Varies by Occupation Type

In this episode of Wages and Prices, Lucas and Luna dig into a data point that rarely makes headlines: the gap between average hourly earnings and the employment cost index has been widening, and the difference tells a story about which workers are actually seeing raises. Using the latest April data, they show that hourly workers in leisure and hospitality saw 5.2% annual wage growth, while office workers in professional services got just 3.1%. Lucas explains how the composition effect—shifts in who is employed—can make average wages look higher without anyone getting a raise. Luna pushes back on whether the data captures gig workers and the self-employed. They close by discussing what this means for the Fed's next move under new Chair Kevin Warsh. #WageGrowth #EmploymentCostIndex #AverageHourlyEarnings #LeisureAndHospitality #ProfessionalServices #CompositionEffect #GigEconomy #FederalReserve #KevinWarsh #April2026Data #WagePriceGap #EconomicData #LaborMarket #Inflation #PurchasingPower #FexingoBusiness #Economics #BusinessPodcast Keep every episode free: buymeacoffee.com/fexingo