Every month when labour market data is published in the US or the UK, the main focus of investors these days is not on the actual number of jobs created but on the increase in wages. Most recent data show that average hourly earnings in the US in September have risen 3.1% compared to the year before, while in the UK average weekly earnings increased 2.7%. This may sound like healthy wage growth (or at least that is what pundits on TV claim it is), but if we compare it with local inflation data then we see that real wage growth is rather low. Real wage growth in the US has been 0.5% and in the UK 0.3%. Nevertheless, at least real wage growth is positive once again after years of declining real wages in both countries.
Is wage growth really going to stoke inflation?
Is wage growth really going to stoke…
Is wage growth really going to stoke inflation?
Every month when labour market data is published in the US or the UK, the main focus of investors these days is not on the actual number of jobs created but on the increase in wages. Most recent data show that average hourly earnings in the US in September have risen 3.1% compared to the year before, while in the UK average weekly earnings increased 2.7%. This may sound like healthy wage growth (or at least that is what pundits on TV claim it is), but if we compare it with local inflation data then we see that real wage growth is rather low. Real wage growth in the US has been 0.5% and in the UK 0.3%. Nevertheless, at least real wage growth is positive once again after years of declining real wages in both countries.