Contributions of Components
Among the WTI's seven components, the three negative contributors to the final fourth quarter reading were the share of employers planning to hire production and service workers in the coming months, measured by Bloomberg BNA's quarterly employment outlook survey; forecasters' expectations for the rate of inflation, compiled by the Federal Reserve Bank of Philadelphia; and job losers as a share of the labor force, reported by DOL. The three positive factors were average hourly earnings of production and nonsupervisory workers and the unemployment rate, both from DOL, and industrial production, reported by the Federal Reserve Board. The neutral component was the proportion of employers reporting difficulty in filling professional and technical jobs, also from Bloomberg BNA's employment survey.
This month's WTI report incorporates annual revisions to historical data based on revised component data published recently by DOL and the Federal Reserve.
Bloomberg BNA's Wage Trend Indicator™ is designed to serve as a yardstick for employers, analysts, and policymakers to identify turning points in private sector wage patterns. It also provides timely information for business and human resource analysts and executives as they plan for year-to-year changes in compensation costs.The WTI is released in 12 monthly reports per year showing the preliminary, revised, and final readings for each quarter, based on newly emerging economic data. More information on the Wage Trend Indicator is available on Bloomberg BNA's WTI home page. The next report of the Wage Trend Indicator™ will be released on Tuesday, March 19, 2013 (revised first quarter) Bloomberg BNA, a wholly owned subsidiary of Bloomberg, is a leading source of legal, regulatory, and business information for professionals. Its network of more than 2,500 reporters, correspondents, and leading practitioners delivers expert analysis, news, practice tools, and guidance — the information that matters most to professionals. Bloomberg BNA's authoritative coverage spans the full range of legal practice areas, including tax & accounting, labor & employment, intellectual property, banking & securities, employee benefits, health care, privacy & data security, human resources, and environment, health & safety. Dr. Joel Popkin , who is acknowledged as one of the country's foremost authorities on the measurement and analysis of wages and prices, developed the WTI for Bloomberg BNA. Formerly an official with the Bureau of Labor Statistics, Dr. Popkin has been an analyst observing and predicting the U.S. economic outlook for 40 years. Kathryn Kobe, who worked with Popkin in designing the indicator for Bloomberg BNA, is director of price, wage, and productivity analysis at Economic Consulting Services LLC. To obtain Wage Trend Indicator™ reports by e-mail on a regular basis, contact Jerry Walsh, BNA Research & Custom Solutions, 800-372-1033. SOURCE Bloomberg BNA