"Pay is reflecting a labor market that is not getting looser, but maybe tightening a little bit. Meanwhile, employees who remained with the same employer experienced steady annual wage growth of 4.4%. After-tax wage growth for lower-income households climbed to 5.2% in July, surpassing wage gains for higher-income households for the first time since late 2024. Economists caution, however, that stronger wage growth alone does not necessarily signal renewed inflationary pressure. Richardson echoed that view, saying the recent acceleration in pay growth deserves attention but does not yet point to a wage-driven inflation cycle.