Wage Growth? Real Hourly Earnings Are Slowing Notably

Real average hourly earnings have risen only once in the last 6 months.

January's 0.2% MoM drop is bigger than expected and confirms the first 6-month drop in over a year as wages appear to have stagnated for two years now...

But didn't the entire market crap itself at hit wage growth print from the BLS two Fridays ago (that everyone and their cat now knows was due to hours worked adjustments)?

Comments

trulz4lulz Juggernaut x2 Wed, 02/14/2018 - 11:14 Permalink

The economy is being inflated don the backs of the working class. For example I run 4 Swiss CNC machine, Star Micronics with Fanuc controls, complicated stuff to be honest. I make orthopedics for broken and disabled kids, God's work and an honest living. I'm not going to tell you howuch I make an hour, because it's embarrassing quite honestly. But, here is the point. Last night I made 24 nails, and 30 orthopedic screws. Or, roughly $20,000 dollars in widgets, in about 6 hours of total run times. We have 36 of those machines running almost 24hrs a day 7 days a week. For every $20k I make for them, they pay me $100. Those tools will then be sold to patients for probably close to $100,000 USD. There's the problem. So go ahead tell your kids to get into skilled trades!! We're fucked, in short. 

In reply to by Juggernaut x2

Endgame Napoleon TheSilentMajority Wed, 02/14/2018 - 09:10 Permalink

What hardly went up must come down. 

Factor in the decrease in hours, and there was no raise for most employees, with the slight, temporary upgrade in wages mostly going to managers who, in fact, are often married to other high earners, concentrating the wealth from salaried, non-job-creating positons in fewer households. 

https://www.zerohedge.com/news/2018-02-05/goldman-exposes-americas-corp…

In reply to by TheSilentMajority

Ricki13th Wed, 02/14/2018 - 09:04 Permalink

The biggest story today is about Obama satanic portrait don't pay attention to inflation surging and wages are DECLINING when adjusted for inflation. The next economic crisis is here. 

Endgame Napoleon DaMule Wed, 02/14/2018 - 09:20 Permalink

The fix is not even under discussion. How about returning to the one-earner, mostly married households of yesteryear, when we had a much bigger middle class. There was less ostentatious splendor for the top 20%, with the business class of job creators being the only ones who could keep up with the Jones’ to the max. We had a bigger middle class when the wage pool was not diluted with so many people, chasing part-time, temporary, high-turnover and 1099-gig jobs. The jobs with middle-class wages were spread over more households. We also had a more reasonable definition of middle class, not one based on dual-high-earner parents who are not middle class, but a lower rung of upper class.

In reply to by DaMule

HRClinton Endgame Napoleon Wed, 02/14/2018 - 09:56 Permalink

Well, the Monetary Predator Class changed all that with fiat money coming in 1971, and all the Ponzinomic bubbles and distortions being created.

Thanks to Labor Arbitrage, everyone in the 95% gets screwed:

> White Collar wages are undermined by H1B peeps from Chindia, and offshoring IT to India.

> Blue Collar wages are undermined by automation and massive offshoring of Mfg. (to Mexico and Asia)

> No Collar jobs are undermined by new illegals, who underbid earlier illegals.

 

In reply to by Endgame Napoleon

HRClinton Endgame Napoleon Wed, 02/14/2018 - 09:56 Permalink

Well, the Monetary Predator Class changed all that with fiat money coming in 1971, and all the Ponzinomic bubbles and distortions being created.

Thanks to Labor Arbitrage, everyone in the 95% gets screwed:

> White Collar wages are undermined by H1B peeps from Chindia, and offshoring IT to India.

> Blue Collar wages are undermined by automation and massive offshoring of Mfg. (to Mexico and Asia)

> No Collar jobs are undermined by new illegals, who underbid earlier illegals.

 

In reply to by Endgame Napoleon

LawsofPhysics Wed, 02/14/2018 - 09:13 Permalink

The 1%, do not have any "wages"...

...producers versus consumers.  The producers still haven't figured out that they have all the power.

"Full Faith and Credit"

Same as it ever was!

Sonny Brakes Wed, 02/14/2018 - 09:27 Permalink

One minute wages up the next minute they're down. If you want stability on wages then we the working people need to know our worth relative to others and that is not a known quantity. Minimum wages distort prices, but so do minimum prices. I've noticed that when consumers are forced to turn to the cheaper brands the name brands force the cheaper brands off the shelves. When retailers take on the name brands with no name brands the name brands force retailers to set minimum prices. I.E. retailers can't take a loss on a popular name brand item as a loss leader without permission from that brand. Free markets, my ass.

scubapro Wed, 02/14/2018 - 09:35 Permalink

 

 

so which is it:   ahe causes inflation....which then drives down 'real' wages....which reduces inflation?    c'mon already choose a side!

 

is it the Chicken or the Egg!?

bigloser Wed, 02/14/2018 - 09:39 Permalink

But didn't the entire market crap itself at hit wage growth print from the BLS two Fridays ago (that everyone and their cat now knows was due to hours worked adjustments)?

I have a dog. He didn't know.

But, he did take a steamy dump on a picture of the Eccles Building.

Maybe he knows more than he's letting on.