Real Hourly Earnings Decrease 0.1%, Real Weekly Earnings Drop 0.4%, Hooray!

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As a result of a rising CPI real hourly earnings are down 0.1% for the month. Coupled with shrinking work hours, real weekly earnings declined 0.4% for the month.

by Mish

Hooray!

Please consider the BLS Report on Real Earnings.

All Employees
Real average hourly earnings for all employees decreased 0.1 percent from July to August, seasonally
adjusted, the U.S. Bureau of Labor Statistics reported today. This result stems from a 0.1-percent
increase in average hourly earnings being more than offset by a 0.2-percent increase in the Consumer
Price Index for All Urban Consumers (CPI-U).
Real average weekly earnings decreased 0.4 percent over the month due to the decrease in real average
hourly earnings combined with a 0.3-percent decrease in the average workweek.
Real average hourly earnings increased 1.3 percent, seasonally adjusted, from August 2015 to August
2016. This increase in real average hourly earnings combined with a 0.9-percent decrease in the average
workweek resulted in a 0.4-percent increase in real average weekly earnings over this period.
Production and Nonsupervisory Employees
Real average hourly earnings for production and nonsupervisory employees were unchanged from July
to August, seasonally adjusted. This result stems from a 0.2-percent increase in average hourly earnings
being offset by a 0.2-percent increase in the Consumer Price Index for Urban Wage Earners and Clerical
Workers (CPI-W).
Real average weekly earnings decreased 0.3 percent over the month resulting from no change in real
average hourly earnings combined with a 0.3-percent decrease in average weekly hours.
From August 2015 to August 2016, real average hourly earnings increased 1.8 percent, seasonally
adjusted. The increase in real average hourly earnings combined with a 0.3-percent decrease in the
average workweek resulted in a 1.5-percent increase in real average weekly earnings over this period.

Prices Up, Wages Down

The bottom line is prices are up and wages are down. This event comes with a big “hip, hip, hooray” for a rising CPI in a separate report from the BLS this morning.

For details on the CPI “good news” please consider Good News For Inflationists: Medical Costs and Rent Surge; Mini-Stagflation Coming Up?

Mike “Mish” Shedlock

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