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