- Worker Bees Hourly Wages up 2.5%- comprises 82% of aggregate
- Management Hourly Wages up 4.7- comprises 18% of aggregate
The Chart Wall Street Loves Today
And Obama's Record of Job Growth Seems Solid
Production Workers Didn't do as well as their Supervisors
Worker Earnings Didn't Keep Pace with Management
... this headline hourly earnings number - impressive as it may be - tells an incomplete story as it consolidates wages for both production & nonsupervisory employees, which comprise the vast majority, or 82.3% of the labor force, and the top echelon of workers, the 17.7% of private workers who are classified as supervisory, and managerial.
What happens when one looks at just the subset of production and nonsupervisory private workers, which in October amounted to 101.3 million, or just over 82% of the entire private workforce? Well, we find that their wage growth story is very different. According to the BLS, these particular workers made on average $21.80 per hour, up only 2.5% from $21.26 a year ago, which as the chart below shows is where wage growth for this group has been for three years, and after a modest dip in late 2014, has been largely unchanged since the start of 2014.
Indicatively, this particular group of workers saw a 4% annual growth in wages at the time the 2007 recession hit.
In other words, for the vast majority of American workers, real wage growth is still as anemic as it has been for years, barely outpacing official measures of inflation.
full article here
And What About Real Earnings Growth Being Negative?