Manufacturing Wage Growth Hits Highest Level in Over a Decade

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Manufacturing Wage Growth Hits Highest Level in Over a Decade

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Message 11 of 25

In Trump World, a good economy cancels out the many evils of the Trump Presidency. Their motto, it doesn't matter how low Trump sinks, as long as the economy is doing well, he will receive our support. They are people with no values and no character and they do NOT put America first.

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Re: Manufacturing Wage Growth Hits Highest Level in Over a Decade

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Message 12 of 25

In Trump’s Economy, Working Class Employees Are Getting Bigger Raises Than Their Bosses

Alex Wong/Getty Image

 

BY:  Chris White

 

Wages for working class Americans are increasing faster than for their bosses as the U.S. economy keeps humming and unemployment rates stay low, The Wall Street Journal reported Friday.

 

The wage increases are a sign that the labor market is tightening to a point where it is giving low wage employees leverage for raises. A short supply of workers and an increase of poaching and headhunting among employers are helping those at the bottom climb up the pay scale, the report notes.

 

Pay for Americans on the bottom pay scale rose 4.5% in November from last year, whereas wages for the top 25% of earners rose 2.9%, the WSJ reported, citing data from the Federal Reserve Bank of Atlanta. Wages for low-skilled workers have skyrocketed since 2018, the Atlanta Fed found.

 

Corporations are feeling the effect, according to TheWSJ. “The effective labor pool is smaller than what it has been in the past,” Tony Darden, president of Mooyah Burgers, Fries & Shakes, a restaurant chain based in Plano, Texas, told the WSJ.

 

Darden added: “As you look to bring on folks, ultimately higher wages are used to attract them.” 

 

Darden’s company is competing for workers with other restaurants. Mooyah increased wages 8% in 2019, with much of that flowing to entry-level workers, he said, adding that managers and supervisors are seeing less of a premium than their subordinates as a result.

 
 

Americans are apparently noticing the effects. Nearly 76% of those polled in a Dec, 20 CNN poll believe that the economy is either “very or somewhat good,” the highest percentage in nearly 20 years, when 80% said that the economy was doing well.

 

The poll also shows improvement from President Donald Trump’s first few days in office, when only half of the population viewed the economy as a net positive.

 

 

 

VIMTSTL
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Re: Manufacturing Wage Growth Hits Highest Level in Over a Decade

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Message 13 of 25

@ChasKy53 wrote:

@rk9152 wrote:

@n566192l wrote:

Rk9152,

Can you please explain your post to me. Thanks 😊


One of the ideas in AOC's tome is pay for those who choose not to work.


So what has that have to do with this topic? What does that have to do with anything that n5661921 posted to this topic?  Oh ............. that's right ............ absolutely nothing.

 


It was in response to another poster's inquiry. I do believe that it permitted without anyone seeing a violation.

 

Have someone correct me if I am wrong on that.

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Re: Manufacturing Wage Growth Hits Highest Level in Over a Decade

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Message 14 of 25

@gruffstuff wrote:

Manufacturing Wage Growth Hits Highest Level in Over a Decade

 

Manufacturing Wage Growth Hits Highest Level in Over a Decade

 

That 2.9% Wage Growth Is 1% After Inflation: What The News Doesn't Tell You

 

After the Bureau of Labor Statistics (BLS) monthly Employment Situation report landed on Friday, much of the coverage focused on the increase in average hourly earnings. Up by 2.9% over the last year, it seemed important given how employee pay has lagged overall economic growth. Particularly when you remember that while the well-off saw significant gains in their net worth, most people saw a big loss and are still pulling themselves out of a financial pit.

 

 

News reports noted that the wage growth hit a nine-year high. And that's good, given its anemic movement for years. However, that is a single number.

 

 

Before declaring victory, it would be sensible to put things into context. Below is a graph of the wage numbers from the BLS via the Federal Reserve Bank of St. Louis. The reported figures are nominal numbers, without any correction for inflation; with correction they are called real. Using some St. Louis Fed techniques for getting a graph adjusted by the consumer price index (nominal figures divided by CPI) to get real wages, here is the year-over-year percentage change in average hourly earnings.

 

 

Suddenly that 2.9% doesn't look so … robust. In real terms, the increase is just over 1%. As Jeffrey Pavlik noted on Forbes last month, the CPI hit 2.9% in July, which was a ten-year high. Inflation eats up real earnings.

 

 

By the way, the average hourly figures don't include income for the self-employed, including limited partnerships and other structures frequently used by the wealthiest to manage their income. The reported income numbers significantly understate what they might be if all that other income were included.

 

 

Next, a look at median weekly earnings (typically reported in real, not nominal, figures) — so the weekly take of those in the middle of the working pack.

 

 

 

The starting point is, again, June 2009 at $334 per week, with the end measured in the second quarter of 2018 at $351. That is a 5.1% increase over nine years, or about 0.57% a year.

 

 

It is true that the growth rate for nominal wages is better than it was. But in real terms, don't break out the champagne. Most people can't afford it.

 

Comments :

 

The starting point is, again, June 2009 at $334 per week, with the end measured in the second quarter of 2018 at $351. That is a 5.1% increase over nine years, or about 0.57% a year.

 

 

http://www.in2013dollars.com/2009-dollars-in-2018?amount=334

 

$334 in 2009 → $390.93 in 2018

 

In another ten years we might break even, unless there is a recession.

 

 


Gruffstuff, thank you once again for a post overflowing with facts. Thank you for this posting that put this topic into actual perspective and reality.


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Re: Manufacturing Wage Growth Hits Highest Level in Over a Decade

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Message 15 of 25

@rk9152 wrote:

@n566192l wrote:

Rk9152,

Can you please explain your post to me. Thanks 😊


One of the ideas in AOC's tome is pay for those who choose not to work.


So what has that have to do with this topic? What does that have to do with anything that n5661921 posted to this topic?  Oh ............. that's right ............ absolutely nothing.

 


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Re: Manufacturing Wage Growth Hits Highest Level in Over a Decade

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Message 16 of 25

  I don't usually count them as even,adults.

 

Just herd them over with the migrants and don't count them.

 

Only collect data for what you want people to see.

 

Only count full time employment and jobs that pay over $ 20 an hour.

 

BOOM 

The Trump economy has eliminated poverty.

 

The magic of Republican economics.

 

 

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Re: Manufacturing Wage Growth Hits Highest Level in Over a Decade

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Message 17 of 25

@gruffstuff 

Seems to me this data should exclude people under (say 19).  By counting 16 - 17 and probably 18 year olds - it is bringing the whole stats down because we know that most likely these are the lowest paid because of experience, still learning, etc.  I don't usually count them as even,adults.


* * * * It's Always Something . . . Roseanne Roseannadanna
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Re: Manufacturing Wage Growth Hits Highest Level in Over a Decade

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Message 18 of 25

Manufacturing Wage Growth Hits Highest Level in Over a Decade

 

Manufacturing Wage Growth Hits Highest Level in Over a Decade

 

That 2.9% Wage Growth Is 1% After Inflation: What The News Doesn't Tell You

 

After the Bureau of Labor Statistics (BLS) monthly Employment Situation report landed on Friday, much of the coverage focused on the increase in average hourly earnings. Up by 2.9% over the last year, it seemed important given how employee pay has lagged overall economic growth. Particularly when you remember that while the well-off saw significant gains in their net worth, most people saw a big loss and are still pulling themselves out of a financial pit.

 

 

News reports noted that the wage growth hit a nine-year high. And that's good, given its anemic movement for years. However, that is a single number.

 

 

Before declaring victory, it would be sensible to put things into context. Below is a graph of the wage numbers from the BLS via the Federal Reserve Bank of St. Louis. The reported figures are nominal numbers, without any correction for inflation; with correction they are called real. Using some St. Louis Fed techniques for getting a graph adjusted by the consumer price index (nominal figures divided by CPI) to get real wages, here is the year-over-year percentage change in average hourly earnings.

 

 

Suddenly that 2.9% doesn't look so … robust. In real terms, the increase is just over 1%. As Jeffrey Pavlik noted on Forbes last month, the CPI hit 2.9% in July, which was a ten-year high. Inflation eats up real earnings.

 

 

By the way, the average hourly figures don't include income for the self-employed, including limited partnerships and other structures frequently used by the wealthiest to manage their income. The reported income numbers significantly understate what they might be if all that other income were included.

 

 

Next, a look at median weekly earnings (typically reported in real, not nominal, figures) — so the weekly take of those in the middle of the working pack.

 

 

 

The starting point is, again, June 2009 at $334 per week, with the end measured in the second quarter of 2018 at $351. That is a 5.1% increase over nine years, or about 0.57% a year.

 

 

It is true that the growth rate for nominal wages is better than it was. But in real terms, don't break out the champagne. Most people can't afford it.

 

Comments :

 

The starting point is, again, June 2009 at $334 per week, with the end measured in the second quarter of 2018 at $351. That is a 5.1% increase over nine years, or about 0.57% a year.

 

 

http://www.in2013dollars.com/2009-dollars-in-2018?amount=334

 

$334 in 2009 → $390.93 in 2018

 

In another ten years we might break even, unless there is a recession.

 

 

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Re: Manufacturing Wage Growth Hits Highest Level in Over a Decade

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@afisher wrote:

Bordering on nonsense as it is not the WAGE but the percentage of people who benefit from the wage.    The current regime in DC no longer reports that metric - so that it can make up numbers.  


The WAGE represents that which is EARNED by those WORKING in manufacturing.  Granted, the number of such people is not like in the more labor intensive world of the '50s, but that is the reality of the world.

 

Now, you may call that "nonsense" but how do you propose going back to the old assembly line?

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@n566192l wrote:

Rk9152,

Can you please explain your post to me. Thanks 😊


One of the ideas in AOC's tome is pay for those who choose not to work.

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