WAGES GROW AT FASTEST RATE IN TEN YEARS
By Kevin Ryan
Wages and salaries grew 3.1% on an annualized basis in the 3rd quarter, the biggest increase in 10 years, the Department of Labor announced this morning. And wage growth is significantly outpacing inflation, which grew at an annual rate of 2.3% in September.
The wage data came the same day that ADP and Moody's reported private payroll growth of 227,000 in October, easily beating Wall Street expectations by 49,000 jobs.
With the unemployment rate at 3.7%, the lowest in 49 years, and with more job openings than unemployed Americans, companies are being forced to fight for available workers. Employers have also been boosting benefits to attract and retain workers.
And small business owners say they plan to increase employee compensation in the coming months at the fastest rate since the National Federation of Independent Business survey began in the 1980s.
“How hot is the labor market? Hot enough for employers to pony up some more cash to get workers to come work for them,” wrote Chris Rupkey, chief financial economist at MUFG Union Bank, in a note to clients.
Consumer confidence is at the highest level since 2000, largely because people feel that job opportunities are plentiful, the Conference Board’s Consumer Confidence Survey showed yesterday.
SOURCES:
https://www.cnbc.com/2018/10/31/wag...3point1percent-highest-level-in-a-decade.html
https://www.washingtonpost.com/busi...2e7894-dc85-11e8-85df-7a6b4d25cfbb_story.html
https://www.washingtonpost.com/busi...it-an-especially-advantageous-time-ask-raise/
By Kevin Ryan
Wages and salaries grew 3.1% on an annualized basis in the 3rd quarter, the biggest increase in 10 years, the Department of Labor announced this morning. And wage growth is significantly outpacing inflation, which grew at an annual rate of 2.3% in September.
The wage data came the same day that ADP and Moody's reported private payroll growth of 227,000 in October, easily beating Wall Street expectations by 49,000 jobs.
With the unemployment rate at 3.7%, the lowest in 49 years, and with more job openings than unemployed Americans, companies are being forced to fight for available workers. Employers have also been boosting benefits to attract and retain workers.
And small business owners say they plan to increase employee compensation in the coming months at the fastest rate since the National Federation of Independent Business survey began in the 1980s.
“How hot is the labor market? Hot enough for employers to pony up some more cash to get workers to come work for them,” wrote Chris Rupkey, chief financial economist at MUFG Union Bank, in a note to clients.
Consumer confidence is at the highest level since 2000, largely because people feel that job opportunities are plentiful, the Conference Board’s Consumer Confidence Survey showed yesterday.
SOURCES:
https://www.cnbc.com/2018/10/31/wag...3point1percent-highest-level-in-a-decade.html
https://www.washingtonpost.com/busi...2e7894-dc85-11e8-85df-7a6b4d25cfbb_story.html
https://www.washingtonpost.com/busi...it-an-especially-advantageous-time-ask-raise/