WSJ: US Workers Get Biggest Pay Increase in Nearly a Decade

Labor News

In this September 24, 2013, file photo, just cut stacks of $100 bills make their way down the line at the Bureau of Engraving and Printing Western Currency Facility in Fort Worth, Texas. (Photo: LM Otero, AP)

Reprinted from The Wall Street Journal by Harriet Torry on July 31, 2018.

US workers received their biggest pay raises in nearly a decade this year, a sign the strong labor market is boosting wages as employers compete for scarcer workers.

The Labor Department’s employment-cost index rose 2.8% in the year to June compared with a year earlier, the government said Tuesday. Wages and salaries, which account for about 70% of all employment costs, also rose 2.8% from a year earlier, the strongest gain for both measures since September 2008.

Since the end of the most recent recession, US unemployment has fallen to 4% in June from nearly 10% nine years earlier. Wage growth, stubbornly sluggish for years following the 2007-2009 downturn, has picked up as the labor market has tightened and employers have raised pay to attract and retain workers. …

WSJ 7/31

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About Jeffrey Burman 5295 Articles
Jeff Burman served on the Guild’s Board of Directors from 1992 to 2019. He is now retired. He can be reached at jeffrey.s.burman.57@gmail.com.

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