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Wage Growth Meme Destroyed - Unit Labor Costs Tumble At Fastest Pace In A Year
Unit Labor Costs dropped 1.4% in Q2, missing expectations of a 1.2% drop and falling to the lowest since Q2 2014. Despite all the sound and fury and wage growth looming any minute now... it is not! This is the first consecutive drop in unit labor costs since Q4 2008.
Charts: Bloomberg
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Wait....is this bullish or bearish? I'm so confused.
<Maybe I should be asking if Yellen is Gellin?>
The fiat farce continues........
And more green shoots!
green shoots is better than green shits. I look around and all I see is green shits, everywhere.
Wages? Green shits.
Growth? Green shits.
Corruption? Green shits.
Productivity? Green shits.
Moral/ethical decay? Green shits.
Labor Costs Tumble
93 million people are aware of that.
And this is exactly why the hyperinflationists have been consistently wrong.
The 'wage-push' inflation they so often talk about is an artifact of the 1970's and won't be returning anytime soon.
This is also the reason the Fed can't attain its 2% inflation target. All the money/credit created by the Fed has gone into asset bubbles instead of driving the real economy. When consumers are 70% of the economy, they better have some money in their pockets to spend.
This is just more evidence that Joe 6-Pack is tapped-out and wont be getting a raise anytime soon.
Here comes that recession...
http://www.wsj.com/articles/bloomberg-begins-editorial-job-cuts-1441126699
I didn't know paid liars lose their jobs?
The fact there is a target for the amount our buying power is reduced every year is already bad enough. The Fed has to go.
Hyperinflation is based on the amount of fiat circulating within an economy. The money supply is already hyperinflated. Right now the world is absorbing the hyperinflated Dollar. However, Russia and China look to be ridding themselves of the reserve currency. All those Dollars will flow home. They will make whatever's in your wallet shrink even more in purchasing power.
ZIRP, specifically, has been hugely deflationary. ZIRP is why money creation has stopped dead in it's tracks. The savers got fucked and make no interest. Nothing to spend. Loans for cars are 1.99, home loans are 3.75. Loans create "money" as a debt instrument- you are simply not going to get any type of significant inflation with these ridiculous rates because whatever money has been created- has not leached into the mainstream economy. See Japan for precedent.
SINCE LEHMAN !!!!!
CHUG....CHUG....CHUG....CHUG....CHUG...
Work slaves! Sooner or later we'll catch you down to China. Then, when margins become too thin, you're headed down to North Korea's level. Now flip them burgers bitchez!
They could soon be rolling spinach wraps. Fast food hamburgers were so twentieth century.
Soylent green wraps.
Everything we see screams recession-except the overcooked and flawed GDP and employment numbers.
Plan accoringly.
Recession? Damn, sure feels like a depression to me.
I agree, but you are not going to get the government's economic propaganda machine to ever say that word....
Labor productivity up? Bullish. Buy. A Congress Critter.
Half a bottle of scotch.....you too can own John Boehner.
mission accomplished! what else do we expect with infinite legal (H1B) and illegal immigration? more labor means lower price for that labor....when will the US voters realize that US wage growth is directly related to our open US border policy?
Except for healthcare and regulation costs I was wondering why this did not occur earlier. The ratio to people needing jobs to job openings is still very high. The "recovery" is a farce.
Good thing China closed their stock market for one week. /sarcasm.
Arrest employers of illegal labor! Throw them in jail on live TV. You will see the illegals head back home the next day.
No wage growth is going to be front and center in this next election. :)
Must be all those no-skill folks l, with their higher wages and reduced hours, padding up those numbers.
6 out of 7 days...the NEW 8/830am slam down...on US treasuries....someone wants retail to sell USTsy's OR europe would rather have more euros than $ given draghi's et al 'logic' makes perfect sense
Lower wages is the positive of open borders. If you can put up with the crime and diseases, it is all positive...
Let's face it: there's nothing more exciting than driving your Maserati into a concrete wall at 300 km/hr without a seat belt while singing the national anthem.
http://www.startribune.com/target-lays-off-235-in-twin-cities-tech-opera...
tech ops?? crap, thought those were the 'better' 'skilled' jobs....time to start yet another community college certificate. 'hi wells fargo? yes I need to get some more of those student loans, i still have 10k until im maxed out".
Yeah, all those "safe" STEM majors, petroleum engineers in Denver and Houston are taking a bloodbath.
Wages...you don't need no stinkin wages serf. You'll take your bowl of gruel and like it dammit, cause that's all you're gonna get.
Productivity:
Fire half your staff, force remaining staff to pick up the slack.
Productivity creates unemployment.
Does the above chart take into consideration the $2 trillion underground (and untaxed) economy?
And...there should be a graph that shows the amount of American made goods people are buying as a percentage of total. It would be a good indicator of the American people's personal efforts to do something (anything!) that in the long term helps rebuild the US economy and actually helps themselves.
Imagine effort on a personal level.
This is a very misleading post. I just checked the data, it has increased over the past 2 qtrs both y/y and q/q. The index is at its highest level too. I'm not sure where the "tumble" comes from. It is true that the growth has been weak (1-2% per year) but it sure hasn't tumbled. See link below.
https://research.stlouisfed.org/fred2/graph/?g=1BMz
"first consecutive drop"
What the hell does that even mean? If it's the first one, it doesn't follow anything.
Hey didn't I see this chart last month with a different tag. What are you trying to do confuse me?