Unemployment is low… so low that it is at its lowest level in close to 50 years! And now, finally, American workers are seeing a pay increase (not me, of course, but hopefully some of you are benefitting). Weekly wages are up 3.3% in the third quarter which actually beats the 2.6% inflation increase over the same period.
The Labor Department… decides this figure (3.3%) by surveying people based on full-time wage and salary workers weekly earnings. This is good news because we have seen the job market improve, but not the wages people are making at those jobs. However, rather than pay raises, we have seen companies offer other benefits (that are easier to take away when things go south) like paid sick leave and improved healthcare.
Wages are up, and unemployment is down… so who do we credit for this fantastic turnaround? Actually, no need to ask, because Donald Trump was quick to point the finger at his favorite person – Donald Trump. And shortly after these results were released the president tweeted, “Incredible number just out, 7,036,000 job openings. Astonishing – it’s all working!”