Real Hourly Earnings Decline YoY for Production Workers, Flat for All Employees

Today's CPI report that shows inflation rose only 0.1%. Real wages are not keeping up even with that.

The BLS reports the CPI for all items rose 0.1% in June, up 2.9% over the last 12 months. The index for all items less food and energy rose 0.2 percent in June (SA); up 2.3 percent over the year (NSA).

Real Wages

Even if one accepts the BLS CPI numbers, Real Wages are not keeping up.

Production and Supervisory Workers

  • From June 2017 to June 2018, real average hourly earnings decreased 0.2 percent, seasonally adjusted.
  • Combining the change in real average hourly earnings with a 0.3-percent increase in the average workweek resulted in no change to real average weekly earnings over this period.
  • Production and supervisory workers make 2 cents less per hour than a year ago.
  • Look at the bright side. That's up a penny from last month. And by working more hours, they get the same pay.

All Workers

All workers are doing better. They are no worse off than last year but no better either.

Averages vs Median

Averages are a poor way of looking at things. Pay increases are slanted towards the top end. The median worker in both classes is way underwater from a year ago.

Those who are in school or have private medical insurance, and those who are looking to buy a home are getting killed by the Fed's inflationary policies.

Mike "Mish" Shedlock

Comments
No. 1-3
lol
lol

prices soaring while everything gets smaller in real time,and don't even mention the quality of all that junk in the stores,,in a word pure junk!Extended warranty on every thing!

thimk
thimk

well i guess the next question is how will this effect the PCE indicator and whether the inflation target is "symmetric" . what ever the hell that means . 2 or 3 rate hikes for rest of 2018 ?

hmk
hmk

2.9% CPI YOY, LOL. I wonder what the real number is, by the time inflation shows up in the fake numbers the politburo puts out the horse has left the barn.

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