CHART OF THE WEEK

Real Wages are Rising 

There are different ways to measure worker pay and to adjust for inflation. The chart’s green bars show the “Real Earnings” series, which at first blush suggests slowing real wage growth but uses unreliable wage and inflation measures. The red bars use the Employment Cost Index, a more direct measure of wages, adjusted for inflation using the Federal Reserve’s preferred inflation indicator.

More broadly, using three different leading BLS (Bureau of Labor Statistics) wage series and seven different inflation measures, JEC compiled 21 different inflation-adjusted wage growth measures and found only one showing average real wage growth lower than during the Obama-era recovery.

It is safe to say that real wages have been rising.

THIS WEEK

Upcoming JEC Hearing

The Positive Economic Growth Effects of the Tax Cuts and Jobs Act  (Thursday, 2:30 pm, Dirksen G-50)

LAST WEEK

News & Commentary

US economy logs best performance in nearly 4 years (CNBC)

U.S. Consumer Spending Rose 0.4% in July (Wall Street Journal)

Consumer Sentiment Boosted by Job Optimism (Wall Street Journal)

The Good Times Can Roll On (Wall Street Journal)