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Chart of the Week: AVERAGE HOURLY EARNINGS
Posted By Barry Ritholtz On February 6, 2006 @ 2:00 pm In Employment,Inflation | Comments Disabled
As the 5 year chart
below reveals, there has been no wage pressure in the economy over the past 5
years. The most recent drop and snap back late in 2005 is attributed to
Hurricanes “Katrita” (So too the revised Nov/Dec payroll data).
Source: BLS 
Labor Arbitrage via globalization and outsourcing has put a lid on the growth of wages and personal income across all industries. Union negotiations across numerous sectors
(Aircraft Pilots, Auto Workers, Teachers, Police and Fire) have resulted in
either flat or minimal increases – in many cases below the inflation level. Job
creation continues to be primarily in lower paying positions: food service,
health care, and retail (higher paying construction jobs being the exception).
Quote of the Day
“Wall Street’s graveyards are filled with men who were right too soon.”
Article printed from The Big Picture: http://www.ritholtz.com/blog
URL to article: http://www.ritholtz.com/blog/2006/02/chart-of-the-week-average-hourly-earnings/
URLs in this post:
 Image: http://bigpicture.typepad.com/.shared/image.html?/photos/uncategorized/ces_average_hourly_earnings.PNG
 BLS: http://www.bls.gov/webapps/legacy/cesbtab4.htm
 Fed Watch: Placing Bets on Bernanke’s First Move: http://economistsview.typepad.com/economistsview/2006/02/fed_watch_placi.html
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