Archive for the ‘Wages’ Category

Important new findings on inflation and unemployment from the new ERP

February 22nd, 2016

In economic policy, new findings can sometimes break through the noise based on their timing, relevance, and importantly, who finds the findings. For example, when the President’s Council of Economic Advisors (CEA) publishes highly relevant results on a very hot topic in the annual Economic Report of the President (ERP), it matters. This year’s ERP, out… Read more

Inflationary wage growth? Not even close…

January 29th, 2016

The table below is from today’s release of the Employment Cost Index, a metric of compensation growth–not just wages, but benefits too–that the Fed cares about. The ECI “measures the change in the cost of labor, free from the influence of employment shifts among occupations and industries.” IE, in order to get a purer take on… Read more

A quick look at recent wage growth

January 20th, 2016

One can decompose the growth in real (inflation-adjusted) weekly earnings into the parts due to: a) hourly wage growth b) weekly hours worked c) inflation So, the growth in real weekly earnings = a + b – c, or nominal hourly wage growth plus hours growth minus the rate of inflation. Now that we have… Read more