July 5, 2024
Average hourly earnings rose 0.3% in June to $35.00 after having gained 0.4% in May and 0.2% in April. Earnings growth continues to slow from 5.5% at the beginning of last year to 3.9% currently. Presumably, the flood of workers from Latin America crossing over our southern border with Mexico are willing to take a lot of low-paying jobs as they try to survive in their new home.
These hourly earnings data may understate the growth in wages. The Atlanta Fed’s wage tracker has risen 4.7% in the past year compared to a 3.9% increase in the officially-published hourly earnings data. However, both series are headed in the same direction and gradually slowing.
The problem is that while nominal earnings have risen 3.9% in the past year, inflation has risen almost as quickly and real or inflation-adjusted earnings have risen only 0.7% in that same period of time.
Average weekly earnings rose 0.3% in June to $1,200.50 after climbing 0.4% in May and having declined 0.1% in April. In the past year weekly earnings have risen 3.6%.
Stephen Slifer
NumberNomics
Charleston, SC
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