June 4, 2020

The Bureau of Labor Statistics initially indicated that hourly compensation rose 4.1% in the first quarter after having risen 3.4% in the fourth quarter.

Growth in hourly compensation is a good thing, but some of that increase can be offset by inflation.  So what we are also  interested in is real hourly compensation.  In the first quarter real compensation rose 2.9%.   The first quarter increase consisted of a 4.1% increase in compensation partially offset by a 1.2% increase in inflation .

Stephen Slifer

NumberNomics

Charleston, SC