Congratulations Workers! You Make One Penny More Than a Year Ago
Mike Mish Shedlock
On Wednesday, the BLS announced Real Earnings for January 2018.
Real average hourly earnings for all employees decreased 0.2 percent from December to January, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. This result stems from a 0.3-percent increase in average hourly earnings offset by a 0.5-percent increase in the Consumer Price Index for All Urban Consumers (CPI-U).
Real average weekly earnings decreased 0.8 percent over the month due to the decrease in real average hourly earnings combined with a 0.6-percent decrease in the average workweek.
Production and nonsupervisory employees
Real average hourly earnings for production and nonsupervisory employees decreased 0.5 percent from December to January, seasonally adjusted. This result stems from a 0.1-percent increase in average hourly earnings offset by a 0.6-percent increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
Real average weekly earnings decreased 0.8 percent over the month due to the decrease in real average hourly earnings combined with a 0.3-percent decrease in average weekly hours.
From January 2017 to January 2018, real average hourly earnings increased 0.1 percent, seasonally adjusted. The increase in real average hourly earnings combined with no change in the average workweek resulted in a 0.2-percent increase in real average weekly earnings over this period.
Production and nonsupervisory workers make a penny more per hour. In the all employees category we see sterling results: an increase of eight cents per hour.
If you are a production worker, who works 40 hours a week with two week's paid vacation you have an extra $20.08 to spend in real terms compared to a year ago, that's an extra $1.67 per month.
If you are management, you make the big bucks. You have an extra $160.64 in real terms. That's an extra $13.39 per month.
The pundits are all worried about wage inflation.
Spend it wisely folks.
A week ago I reported Acceleration in Wage Growth is a Statistical Mirage.
The situation is even worse than I thought.
Mike "Mish" Shedlock