In the past year, real wages rose eight months, fell once, and were flat three times.
Please consider the BLS' Real Earnings Report for January 2019.
All employees
Real average hourly earnings for all employees increased 0.2 percent from December to January, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. This result stems from a 0.1-percent increase in average hourly earnings combined with no change in the Consumer Price Index for All Urban Consumers (CPI-U).
Real average weekly earnings increased 0.1 percent over the month due to the change in real average hourly earnings combined with no change in the average workweek.
Production and Nonsupervisory Employees
Real average hourly earnings for production and nonsupervisory employees increased 0.2 percent from December to January, seasonally adjusted. This result stems from a 0.1-percent increase in average hourly earnings combined with a 0.1-percent decrease in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
Real average weekly earnings increased 0.2 percent over the month due to the change in real average hourly earnings combined with no change in average weekly hours.
Assuming You Believe the CPI
Early today, following the CPI release, I noted CPI Flat 3rd Consecutive Month, Year-Over-Year Down 3rd Month.
Year Over Year Prices
- All Items: +1.6%
- All Items Except Food and Energy: +2.2%
- Food +1.6%
- All Energy Items: -4.8%
- Gasoline: -10.1%
- New Vehicles: +0.0%
- Used Vehicles: +1.6%
- Apparel: +0.1%
- Shelter: +3.2%
- Transportation Services: +2.0%
- Medical Care Commodities: -0.3%
- Medical Care Services: +2.4%
Your results will vary, and possibly greatly, especially those who buy their own heal care policies. But also check out shelter, which does not reflect actual home prices.
Anyone seeking to buy a home knows the shelter index is a flat out joke.
Real Average Hourly Earnings 2006-Present
To provide a better long-term picture, I put that chart together by subtracting the appropriate CPI from average hourly earnings.
The CPI deflator is CPI-U for everyone and CPI-W for production and nonsupervisory workers.
Short Synopsis
Prices that cannot be accurately measured in the first place are further hedonically modified to provide some sort of average as if that makes any sense.
In terms of wages, it's not the average that matters but the median. We get those numbers on a two-year lag.
Realistically, most of this is a joke.
This material is based upon information that Sitka Pacific Capital Management considers reliable and endeavors to keep current, Sitka Pacific Capital Management does not assure that this material is accurate, current or complete, and it should not be relied upon as such.
Recommended Content
Editors’ Picks
AUD/USD remained bid above 0.6500
AUD/USD extended further its bullish performance, advancing for the fourth session in a row on Thursday, although a sustainable breakout of the key 200-day SMA at 0.6526 still remain elusive.
EUR/USD faces a minor resistance near at 1.0750
EUR/USD quickly left behind Wednesday’s small downtick and resumed its uptrend north of 1.0700 the figure, always on the back of the persistent sell-off in the US Dollar ahead of key PCE data on Friday.
Gold holds around $2,330 after dismal US data
Gold fell below $2,320 in the early American session as US yields shot higher after the data showed a significant increase in the US GDP price deflator in Q1. With safe-haven flows dominating the markets, however, XAU/USD reversed its direction and rose above $2,340.
Bitcoin price continues to get rejected from $65K resistance as SEC delays decision on spot BTC ETF options
Bitcoin (BTC) price has markets in disarray, provoking a broader market crash as it slumped to the $62,000 range on Thursday. Meanwhile, reverberations from spot BTC exchange-traded funds (ETFs) continue to influence the market.
US economy: slower growth with stronger inflation
The dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.