Wage Growth for Men About 1/4% Per Year Since 2000, Women About 1/2% Per Year

-edited

Women are slowly catching up to men in median wages but growth has been pathetic across the board.

BLS data on real wages shows women are slowly catching up to men.

That's the good news.

The bad news is real wages for women have only risen at slightly over 1/2 of 1 percent per year for 19.5 years.

Men performed even worse. Real wages for men have risen at a pathetic rate of about 1/4 of 1 percent per year in the same period.

The featured images is from a set of Interactive BLS Graphs on Fred.

The anecdotes and calculations are mine.

I used an Annual Rate of Return Calculator to determine the percentages.

Major Assumption

The numbers assume you believe the BLS' questionable rates of inflation.

I don't because the BLS excludes housing prices and ignores asset bubbles. The BLS also dramatically understates health care costs.

Questioning the BLS Medical Care Index

I discuss health care and incorrect BLS methodology in Another Surge in CPI Medical Care Costs.

One person commented "I bought my own insurance and it went up about 180% in the first three years of Obamacare."

Unfortunately, that's typical. Anyone buying their own insurance will not believe the purported 4.3% rise in the past year.

I discuss other problems with the BLS' medical calculations.

Annualized Home Price Increases

Housing Bubble Reblown

Last Chance for a Good Price

The Last Chance for a Good Price Was 7 Years Ago.

Home prices are not in the CPI.

Those who want to buy a home quickly discover wage growth has not kept up with home price growth.

Since 2000, assuming you believe the CPI, wages are going up 0.27% per year for men and 0.56% per year for women. Add them together to get a household and the combined increase is well under a full percent.

Home prices are dramatically outstripping median wage increases.

For those looking to buy a home and for those who do buy their own medical insurance, real wage growth is negative.

American Dream

In case you missed it, 68% of Millennial Homeowners Regret Buying a Home

The top regret "too costly to maintain".

So congratulations American Dreamers on your 0.34% annualized wage growth since January, 2000, assuming you believe you actually got that.

Mike "Mish" Shedlock

Comments (37)
No. 1-24
JonSellers
JonSellers

And one wonders why folks are angry about off-shoring jobs and illegal immigration. The obvious solution is to cut taxes and regulation, especially wrt big banks and financial institutions.

Harry-Ireland
Harry-Ireland

Thanks Mish! This was an article I was waiting for. A while ago, I mentioned this in the commentsection. Now, am I correct to infer that basically, the wage-growth is negative or non-existent, when considering inflation, housingcosts and healthcarecosts are rising exponentially?

Mish
Mish

Editor

Wage Growth is clearly non-existent even as women catching up to men.

For anyone wanting to buy a home or is buying their own health insurance, wage growth is deep in the red.

Tony Bennett
Tony Bennett

"median"

What an evil word.

Bulltards love to hide behind "mean".

Tony Bennett
Tony Bennett

Yield curve a bit more inversiony today.

shamrock
shamrock

This assumes that everyone has the same job they did 19.5 years ago. In the real world, people move up to higher paying jobs and newcomers take their old jobs with the 1/2% gain in wages.

Stuki
Stuki

Duh!

Somebody obviously had to do productive work for free, in order to create the wealth which The Fed could then redistribute to idle "asset owners."

It's not as if wealth is created by neither fungi in the walls of idle, decaying houses; nor by printing Washington's head on paper pieces. Ergo, the wealth has had to be taken from someone, somewhere. One would hope it wouldn't take Fields Medal levels of deductive powers, to figure out from whom.

Casual_Observer
Casual_Observer

The best way to wage growth is to switch to a higher paying job. Expecting wage growth in the same job is unrealistic in the era of globalization of labor, higher health care and other costs. Companies have been touting spending more per employee on healthcare as another measure of compensation and thus reducing your wage growth. Studies have always shown your negotiating power is best when you initially negotiate your compensation.

abend237-04
abend237-04

So, if I'm a guy who jumped in my time machine on 1/1/2000 with $100,000 in my wallet, along with a day's wages of $100, and came back last month, I'd discover the $100,000 now worth $65,790 and my day's wages up to a whopping $105.30. No wonder I'm pissed.

bradw2k
bradw2k

Housing, medical care, equities ... every market the gov touches becomes unaffordable. But never mind that, it's climate catastrophe day so everyone gather and yell about how your neighbors aren't self-sacrificing enough to Gaia.

Mish
Mish

Editor

"This assumes that everyone has the same job they did 19.5 years ago."

It makes no such assumptions. Start at 2012 or 2013 or 2014 Any time after 2012 wages did not keep up, did they?

Of course if you start at the housing bubble peak, wages did keep up, but housing was also absurdly priced and jobs were not easy to get.

And by the way, many do never advance. They don't have the skills or are trapped at GM or floating between Walmart and McDonalds or wherever.

Finally, many lost high paying jobs in 2008, 2009, and 2010 and never got back to where they were!

So, start whatever year you like and report back.

Mish

Realist
Realist

Sounds like a lot of Americans whining about being “entitled” to higher wages. Lots of “socialists” (gasp!) here. If you want higher wages, acquire the skills/education necessary to earn them. Or better yet, go start a company and pay your workers the wages you think “you” are entitled to. That should work.

jivefive99
jivefive99

100 years ago the business owners werent particularly generous either, and unions were formed to at least try to fight the problem .... and it wont work again?

JanNL
JanNL

The "combined wage growth" is under half a percent. Do not add them together.

Mish
Mish

Editor

"Let me put in another way. Take a random sample of 1000 people making the median wage 20 years ago. Now sample how much those exact same people are making now. "

Shamrock - you completely miss the point We are discussing "Real" inflation adjusted wages - not Nominal wages

Mish
Mish

Editor

Shamrock - the chart is clear on that point. Nominal wages are indeed higher. Real wages are barely growing an that assumes one believes the CPI.

hmk
hmk

Wages are rising even for unskilled labor that students and beginners start in. Ask any employer what their biggest challenge is. It is finding labor. I was in the car wash yesterday and a help wanted sign was up. $15/hr. This is happening all over and the bullshit numbers the govt publishes should be ignored. That and their CPI bullshit propaganda numbers are part of their brain washing campaign from the economic politburo. I guess most people buy their outright and deliberate lies. I just don't get it. I am guessing this is part of the undercurrent towards the migration to socialism.

Realist
Realist

Hi hmk. Similar to your experience, in my country, there are “help-wanted” and “now hiring” signs everywhere. That has been the case for the 4-5 years that I have been commenting on this blog. There has been a shortage of skilled workers to fill all these jobs, just as in the US. Sadly, there are still many unemployed people. However, they are unemployed because they lack the skills and ability to do the jobs that sit empty. That is why I support and work with a charity that trains people and gives them the skills needed to qualify for these jobs. I have been working with employers who need skilled workers and come to us for help. These employers do not have the time or resources to train workers themselves and rely on charities like ours to train people. This is my main philanthropic activity to which I donate both time and money.

Unlike many on this site, instead of sitting on my ass and “complaining about the government full-time”, I simply look at a problem, and try to do something about it. I don’t care about the government, or political parties, or a lot of the crap that so many here spend all day posting venomous statements about. I can’t believe how many hours some people spend posting their hate.

Webej
Webej

Mish: You can't add those two rates of increase in a household: even if it were two women, the median increase would be 0.56%. If it was a woman and a man with equal income, the increase would be 0.41% increase, but less if the man's income is higher than his partner.

So added together in a household it's not less than 1%, in total it is less than ½ of 1%!

Jackula
Jackula

If the job market was as great as reported there would be large increases in REAL terms adjusted for the CPI AND asset inflation. I'm getting real tired with all the yahoo's talking about how great the job market is because their local situation its strong or they have the polar opposite of Trump derangement syndrome. Sure I'm seeing signs the youth employment is stronger with lots of fast food and small retail posting help wanted signs but lets not confuse a job market that has slowly improved with a hot one. I know lots of skilled 40-65 year olds in the huge urban Southern CA area that can't get anything other than part-time $15 per hour jobs. Sure my relatives in the Boise Idaho area see great job prospects there but that is a small urban area that is growing like crazy. Kudos to the folks commenting working at non-profits teaching modern job skills, I will look for some around here to direct my underemployed cohorts to.

Country Bob
Country Bob

Men don't get paid the same amount, not even when they have the same private sector job -- so why would women get paid the same? We are individuals, not commodity robots. I would expect some women to get paid MORE, and some to get paid less, and the distributions will vary depending on job type and skills and countless other things. The equality thing just seems like another piece of academic hokem.

Have to agree with Mish that overall wage growth has not kept pace with the cost of living. Its not just houses. Health care and education costs spring to mind. Getting a quality repair done on your car, home appliance, etc -- you have to have the same work done multiple times to get it right, so the total cost of repair skyrockets. Its called inflation since Mish doesn't want to say it. Inflation has been higher than official reports, and the bond market is pricing in Fed manipulation, not deflation. Wall Street is experiencing central planning. Main Street is experiencing INFLATION

THX1138
THX1138

"Anyone buying their own insurance will not believe the purported 4.3% rise in the past year"

I don't buy my own insurance and I know the 4.3% is BS. My premiums and deductibles have risen in double digit % every year since the un-affordable care act was decreed.

djh860
djh860

Econ 101 add more labor (women + immigrants) cost of labor declines or grows more slowly . Thats how I see the last 40 years.