Average hourly wage growth has exceeded inflation for 12 straight months, according to new Bureau of Labor Statistics data released this morning. This real (or inflation-adjusted) wage growth is a key indicator of how well the average worker’s wage can improve their standard of living. As inflation continues to normalize, I’m optimistic more workers will…
It is worth noting that the article itself does bring employment rate into it, stating that the reason for the real wages spiking like that did in 2020 was the lower wage employees leaving work, thus raising the average wage.
I haven’t seen the data on employment rate, but if the bottom end of employees are still not back to being as employed as they were at the start of the pandemic, then that may be keeping average wages higher than they’d otherwise be
It is worth noting that the article itself does bring employment rate into it, stating that the reason for the real wages spiking like that did in 2020 was the lower wage employees leaving work, thus raising the average wage.
I haven’t seen the data on employment rate, but if the bottom end of employees are still not back to being as employed as they were at the start of the pandemic, then that may be keeping average wages higher than they’d otherwise be