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 (21)
No. 1-21
Stuki
Stuki

…..And, out of that penny, you are mandated to spend an additional $100 a month for less health care. Or, to be more precise, to spend $100 less for health care, $200 more to fund a parade where a bunch of produce-nothing-consume-a-lot yahoos get to preen around pretending they have “given” health care to people, and are therfore, like, sophistimecated like, uh, the Euros and stuff…

Anyway, how much producers/workers get to take home in aggregate, has to equal that which they produce, minus that which is doled out to others in exchange for anything other than producing. As all real value handed out, first has to be produced. As long as official policy is to fork over hand over fist to idle “asset owners,” for merely sitting there looking stupid; it’s hardly surprising that little is left to hand out as compensation for actual work/production. You simply can’t have it both ways, no matter how hard the Fed the rest of the graft beneficiaries work to obfuscate that fact.

Schaap60
Schaap60

Great, but not enough for that Costco membership.

Snow_Dog
Snow_Dog

I’ve seen this movie once before. It’s called “We Pretend to Work and They Pretend To Pay Us”.
You’re going to love the ending, so I won’t spoil it by posting it here at Mish’s.

WhirledPeas
WhirledPeas

Welcome to a world where production workers are paid on a scale heavily influenced by the supply of 20 million illegal aliens. It will get worse if we don't build the wall and begin real fines and jail time for CEO's of companies who hire illegal aliens.

JonSellers
JonSellers

Wait! I thought low unemployment was supposed to increase demand for labor and therefore wages! That's what all the economists said!