No sign of a recession, but wage growth is flatlining.
Source: The New York Times
The first story: Jobs are plentiful and unemployment low. Most everyone who wants a job can find one…The second story: Wage growth is flatlining. For most of the last few years, pay to American workers has been rising at steadily increasing rates…But that rate of increase now seems to have leveled off or decreased. The year-over-year rate of growth in wages peaked at 3.4 percent in February and has receded to 3 percent in October, according to the latest numbers…
So most people can find a job and more people are working, but employers are not having to increase compensation much to recruit and retain people. This isn’t what economic models suggest should happen.
Do you want a job, or higher pay? Because the U.S. Department of Labor says you can’t have both. News articles focus on big growth in new jobs but then can’t explain essentially flat pay in a market with high demand for labor. Meanwhile, companies are spending less and pocketing more: “compensation in private industry rose 3 percent in 2018, and only 2.7 percent in the 12 months ended in September.” Nothing’s changed. (See B.S. on the jobs numbers.)
What’s your take?
Are you making more money?
How much does your CEO make as a ratio compared to you?
Why don’t the Department of Labor numbers make sense?