Wednesday, August 1, 2018

Worker pay rising at fastest pace in 10 years

Pay and benefits that stagnated during the Obama years rose at the fastest pace in 10 years, according to the Economic Cost Index.

American workers are finally reaping the benefits of the lowest unemployment rate and best jobs market in decades: Wages and benefits are rising at the fastest pace in a decade.

The employment cost index rose 0.6% in the second quarter, a tick below the MarketWatch estimate of 0.7%. More important, the cost of worker compensation in the form of pay and benefits edged up to 2.8% to mark the biggest yearly gain since mid-2008.

Firms have sought to fill openings by offering better benefits such as more vacation time or flexible hours.

While bigger paychecks are great for workers, the Federal Reserve is watching closely to see if rising compensation is stoking inflation.

Inflation pressures are not coming from higher prices despite the increase in wages.

More than the tax cuts, the general business climate has created the perception that we are experiencing good economic times and that with inflation largely tamed, the chances are good that growth will continue.

https://www.americanthinker.com/blog/2018/08/report_worker_pay_rising_at_fastest_pace_in_10_years.html 

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