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Wage Growth Meme In Tatters As Unit Labor Cost Growth Tumbles, Huge Downward Revisions
Instead of an exuberant 6.7% surge in Q1 unit labor costs, heralded by any and all mainstream economists and talking heads as proof that long-awaited wage growth is here, the historical revision slashes it to a mere 2.3% increase, which followed by Q2's dismal 0.5% increase - the weakest since Q3 2014, suggests wage growth in America is anything but robust. Nonfarm productivity also missed expectations, rising just 1.3% QoQ, a verymodest rebound after two quarters of declines.
Momentum lost.
Charts: Bloomberg
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Nobody on the road..
Nobody on the beach..
http://www.dailymotion.com/video/x1yqje_don-henley-boys-of-summer_music
Dear Mr. Yellen,
This needs a quadruple seasonal adjustment.
Yeah, but I got my Wafarer's on bro ---
Robots don't demand raises.
They also don't need lunch breaks.
Don't worry, the corporate parasites are onto this one.
Or bathrooms, or light, or air conditioning, or Americans with disabilities space...
Wage growth must be high in the land of the free since unemployment is only 5.3%. Paul Craig Roberts examines unemployment:
In 1994 the Clinton regime stopped counting long-term discouraged workers as unemployed. Clinton wanted his economy to look better than Reagan’s, so he ceased counting the long-term discouraged workers that were part of Reagan’s unemployment rate. John Williams (shadowstats.com) continues to measure the long-term discouraged with the official methodology of that time, and when these unemployed are included, the US rate of unemployment as of July 2015 is 23%, several times higher than during the recession with which Fed chairman Paul Volcker greeted the Reagan presidency.
An unemployment rate of 23% gives economic recovery a new meaning. It has been eighty-five years since the Great Depression, and the US economy is in economic recovery with an unemployment rate close to that of the Great Depression.
http://www.paulcraigroberts.org/2015/08/10/us-economy-continues-collapse...
I see 4 straight quarters of growth, which hasn't happened since the gilded age of 2006. Are we flashing recession?
If the barely-above-zero 2nd quarter number gets revised to -0.1% would that finally blow a hole in the "recovery" theme?
no
there is no surprise that all recessions are only called well after they have started and usually after the "recovery" has already claimed to have begun.
In an environment where everything is hinged on confidence, and that confidence is no longer based upon anything but propaganda, there will be no negativism allowed, not by the MSM anyway as they know who calls the shots.
Our survival theme as determined by TPTB is blind optimism. Running blind assures disaster and should support the notion that none of this will have ever been seen coming.
No one could have seen it coming and no one should expect an explanation for why it took so long to realize we were in the midst of a recession with the establishment pushing the great moderation everything is awesome meme. No attempt should be made to correct the shit metrics that managed to elude the planners because they're definitely still the smartest guys and this time was totally different.
I predict that those who argued most vociferously that bears were wrong are already forgetting those discussions. Forgetting is the super power of the central planning zealots.
Welcome to Japan bitchez! Time to suffer quietly masses and eat your rotting rice.....
30-40 year malaise??
I now say PIIGENS (Add UK & Nederlands to PIIGS).
UK is never pointed out as poor investors in their own economy, spoken ill of for using trade as an excuse for not reindustrializing after WWI. I don't think Spain ever fully industrialized.
Did Spain or Portugal have good economies at any time in the 20th century??
Japan slowed down after a collapse, but I probably need to look more at the causes.
The only thing robust is degeneraton, and the only positive statistics are those which slow the process. Its all in one direction...down. Some days faster, some days slower.
go ahead, bite the big apple
don't mind the maggots...
No wage growth for me this year. The company I worked for got bought out and though we were profitable before the merger the new company is not, so no raises and no bonuses anytime soon.
Ask them if they are Lying.
Tell them they are either stupid, incompetent, or they are lying.
Bankers get mean and angry when they negotiate, but they are liars, right? If these kind of people take over our businesses... it follows that they will lie and prevent anyone from seeing the books as a part of an anti-union strategy.
What power does the wage worker have, if management lies?
And that's why we'll launch Q4 & 5 and print 16 trillion dollar to give the economy a little boost through the "trickle down effect" where all our friends will get billions upon billions and with what they'll pay their minor hookers with, will eventually flow in the citizens pockets boosting the economy.
FUCK YEAH!!!
Can't they fix this metric if they just increase executive compensation??
What if they encouraged Hotels, Restaurants, landscapers, Gardeners, and Construction Workers to be paid under the table??
TBTF could find another industry to off shore, then make financing dependent on automation, robotics, and off shore labor??
Maybe the US President could organize sending more technology overseas??
Ah, yes you can increase wages for Federal Employees by 5% that will help.
Retail is growing. We have more waiters and bartenders, maybe we could get more of those jobs paid under the table on the black market.
Amazon just beat out Walmart. Maybe the US Congress or TBTF Banks could encourage Amazon to off shore more of their labor... or have products packed and shipped from overseas??
"Offshore"
http://weburbanist.com/2013/03/17/high-seas-venture-sf-tech-incubator-in...
Can someone please tell a European why farming wages are not included? Too seasonal? Migrant?
'cause the masterminds said so...