Real Wages Keep Powering Ahead, but Can the Trend Last?

Real Wages Keep Powering Ahead, but Can the Trend Last?

Hourly wages in the U.S. have been compiling solid gains, if you take very low inflation into account. Average wage growth has been underwhelming over the past several years. But, workers have been able to extend their paychecks farther due to low inflation. According to Labor Department data, real wages for non-supervisors exceeded $22 an hour. This is the best inflation-adjusted figure since 1973.  “I don’t know why we have to apologize for nominal wage growth,” said Carl Tannenbaum chief economist at Northern Trust. “At the end of the day it’s real wage growth that allows us to buy our bread.”

So why are real wages rising now when productivity is advancing so slowly? Shifting inflation trends are an important part of the story.

Click here to read more about the increase in real wages

 

No comments yet.

Leave a Reply