Congratulations Workers! You Make One Penny More Than a Year Ago

Real wages for production and nonsupervisory workers are up precisely one penny per hour from January of 2017.

On Wednesday, the BLS announced Real Earnings for January 2018.

All employees

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.

Hooray!

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.

Wage Inflation

The situation is even worse than I thought.

Mike "Mish" Shedlock

Comments
No. 1-21
Stuki
Stuki

Any state with a population of none (aside from a precious few spectacular skiers) and half the world’s oil, is going to “do great.” Doesn’t much matter if it’s social democratic or wahhabi shecikocratic. If you look at more typically endowed Sweden instead, thing’s aren’t nearly as rosy. Its not really any “worse” than here, but then again, Sweden isn’t really any “more socialistic” than here anymore, either.

Germany has benefited greatly from having been able to keep the bankster and other “asset appreciation” freeloadeing leeches nicely tucked away in London. Hence have remained a place where productive people haven’t had to drag those boat anchors around, to nearly the extent they have in most other Western countries since Nixon took the US, and with it the West, full retard. Which has left Germany unusually efficient at producing stuff. Hence able to hire, and pay, productive people accordingly. Kind of, although to a lesser degree, how the US economy worked pre Fed: Quickly improving efficiency at producing virtually anything, with the gains going to those who actually did the productive work. Rather than to a bunch of useless ambulance chasers, Fed welfare recipients, tax feeders and regulation riders, as is now the case.

If there has been a place where the outlook for the average guy has improved faster than in Somalia since they figured out the proper way to treat governments with the respect they are due, I’m not aware of one. It’s still Africa, certainly No Country for Soft White Men. But people are buying lots of stuff there. Cell phone penetration is high. Stores are stocked. Lots of guys own stuff (including guns. Even ones you can’t own in the Land of the once was somewhat Free. And ditto pharmaceuticals.) which noone did back when the Somalis, too, suffered under the idiocy called a government. And few do in African countries still stuck with the leeches. There’s obviously opportunities there, judging by the number of even 2nd generation (children of those who fled during the revolution) Somalis who are ditching their Uber jobs and heading back to the Old “Country.” Seemingly everyone has a cousin or uncle who can hook them up. Not really sure what they’re all doing, but then again, why should I be? I’m not there, detail studying the place on my own dime and, as the US Founders realized: The limited, enumerated powers of a legitimate government, does not extend to compiling mindless nonsense passed off as “economic statistics,” then use those as an excuse to “manage the economy”/meddle in the lives of, and rob and harass others.

But people aren’t fleeing, many are indeed returning, and one way or the other, people there are able to come up with hard currency to buy stuff from abroad. So, stuff is happening. And, and this is the important part: Things are increasingly happening. The place is growing in prosperity. Which is something Sweden and its ilk (including the US) is not.

whirlaway
whirlaway

Libertarianism works. Just ask the Somalians!

And there is hardly any one demanding communism for the US. If you think social democracies like Germany, France, Norway, Denmark etc., are socialist hellholes, then you have a serious comprehension problem. Heck, even someone as dense as Trump knows that Norway is doing great.

hmk
hmk

Socialism works just ask the Russians, North Koreans, Cubans and the Chinese. They have a great standard of living compared to ours.

MorrisWR
MorrisWR

I also live in Washington and work in Seattle (live on the Eastside). I have seen Seattle go from a great city a few decades ago to a Socialist utopia (that is sarcasm). Socialist policies of the city council is destroying the city. Homeless are everywhere and I see them attack cars at night when I go to work. If people do not pay them they have a problem. The minimum wage increases has made my employer NOT increase others wages. We are union and have not had a contract for almost a year. The proposal was for a 1% increase. Most people I know are struggling with the high cost of living while wages are not increasing for many positions. Sure, we have some high tech jobs and it may appear to be going well but not for most people. Socialism is also increasing our state taxes, which are already fairly high. I work in a major hospital lab - Fortune 400)

philbq
philbq

I live in Washington State. The Puget Sound region is booming economically and has one of the fastest growing populations in the nation. Have you heard of Amazon, Microsoft, Expedia or Costco? This "socialist shithole " is where everyone wants to be.