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There has been little evidence of wage growth even though unemployment has declined and the economy has developed. But Friday's report suggested that wages could finally rise, even though they are, so far, only very close to inflation.
Workers' wages rose 2.9% last year – close to the 3% target – the fastest growth since the end of the recession in June 2009 and a positive sign that pay checks could be boosted after years of stagnation.
A rise in wages has been one of the key missing elements of an economic recovery of more than nine years, economists said.
"It is surprising that the duration of the job recovery and the low unemployment rate have not boosted wage gains, but the August figures could indicate an acceleration of wage gains," said economist David Berson. in chief of Nationwide.
Economists predicted that companies would raise wages to get the employees they wanted in a tighter labor market.
Robert Frick, an economist at Navy Federal Credit Union, said that "wages have been lagging for months given the late stage of expansion, and they are still being negated by rising inflation ".
"At this stage of the previous expansions, we have seen wages increase by 3.5% or even exceed 4%," said Frick.
But with strong job growth and rising wages, he said, "we could enter this ideal situation for workers, which is typical of the peak of growth."
He added that the good news is that the bulk of wage gains will come for workers earning lower wages, which is a good sign, as wage increases have been slow in these areas during the expansion. .
The increase in wages is also a sign that employers want to keep their workers on a tighter job market where it is already difficult to find a skilled workforce for all pay levels.
In the April-June quarter, the economy experienced annualized growth of 4.2%, the best pace in four years, but wages remained stable.
But even the latest rise only offset the rise in inflation, each rising 2.9% last year.
Congressional Democrats regularly hammered Republicans over the lack of wage growth.
The employment report released Friday shows that the economy has created 201,000 jobs, but Pelosi said workers' wages were only growing at about the same rate as l & # 39; inflation.
"The August Jobs Report shows that the soaring cost of living for families continues to stall real wage growth for workers," Pelosi said in a statement.
"While the rich and the hipsters fill up, hard-working men and women struggle to meet the increasingly expensive daily needs.
"Republicans have come to Congress to make reforms that would grow the economy and bring more Americans on the road to success," he said in a statement on the jobs report.
"Our program for growth and jobs provides these results."
President Trump fully appreciated the strong economy, touting employment figures and wage growth during Fargo's remarks in North Dakota.
This week, Kevin Hassett, chief of the Council of Economic Advisers of the White House (CEA), released a report that government figures do not include health care and other benefits to more accurately calculate the wage growth.
"We find that wage gains are 10 to more than 20 times higher than the flagship measures," Hassett said.
Based on Hassett's calculations, wage growth adjusted for inflation is 1.4 per cent, well above the 0.1 per cent reported by the Labor Department in August.
"Most official wage statistics do not include additional employment benefits, such as bonuses, health insurance and contributions to retirement savings," the CEA said in the document.
"But they do not change our understanding of wage growth in the economy," he said.
And not everyone has seen the latest employment report as being pink.
"I think it's a sign of our diminished expectations," David Kelly told JP Morgan Funds on CNBC.
"We have the tightest labor market in 50 years and, in real terms, the average hourly wage has increased almost exactly the same as last month's CPI inflation and a 10-year expansion. I think it's a sign of the weakness of the workforce in terms of wage gains rather than real strengths. "
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