How lower-paid workers are getting their biggest pay raise in years, tell me about this news in (https://www.cbsnews.com/news/workers-getting-biggest-pay-raise/)

The CBS News report details how lower-paid and hourly workers in the United States have been securing their fastest wage growth in more than three years, primarily by switching jobs.Key details highlighted in the article include:

• The Job-Switching Pay Surge: According to findings from the Bank of America Institute, the three-month moving average wage increase for workers changing jobs reached 12.5% in July, marking a three-year high. This trend is driven largely by lower-wage, hourly employees rather than salaried staff.
• Narrowing Income Gap: Across households, lower-income after-tax wages rose by 4.7% year-over-year in August, outpacing the 3.5% gain recorded for higher-income households. Economists point out that this is narrowing the traditional wage gap between lower- and higher-earning brackets.
• High Demand in Specific Trades: Strong demand and labor shortages in sectors like leisure, hospitality, warehousing, transportation, and specialized construction are providing workers with more bargaining power. In particular, the massive buildout of AI data centers has spurred high-wage demand for trades such as electricians, HVAC specialists, and construction workers.
• The “Job-Hugging” Contrast Among White-Collar Workers: While hourly and trade workers are seeing gains by moving jobs, white-collar employees in tech, finance, consulting, and real estate are largely staying puta trend termed “job-hugging.” Weaker hiring and the risk of AI automation in professional roles have increased competition and reduced outside job offers in those fields.
• Persistent Economic Headwinds: Despite the pay bumps, experts note that faster wage growth does not mean these workers are financially thriving. Prolonged post-pandemic inflation has substantially eroded purchasing power, the federal minimum wage remains at $7.25 per hour, and nearly a quarter of U.S. workers remain “functionally unemployed” (unemployed, involuntarily part-time, or earning below $26,000 annually).