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Wages and benefits Surged 0.8 Percent in the First Quarter, Most in a Decade

By MisterLefty following x   2018 Apr 27, 2:35pm 567 views   15 comments   watch   sfw   quote     share    


EMPLOYMENT COST INDEX – March 2018
Compensation costs for civilian workers increased 0.8 percent, seasonally adjusted, for the 3-month period ending in March 2018, the U.S. Bureau of Labor Statistics reported today. Wages and salaries (which make up about 70 percent of compensation costs) increased 0.9 percent, and benefits (which make up the remaining 30 percent of compensation) increased 0.7 percent. (See chart 1 and tables A, 1, 2, and 3.)

Civilian Workers

Compensation costs for civilian workers increased 2.7 percent for the 12-month period ending in March 2018 compared with a compensation costs increase of 2.4 percent in March 2017. Wages and salaries increased 2.7 percent for the 12-month period ending in March 2018 and increased 2.5 percent for the 12-month period ending in March 2017. Benefit costs increased 2.6 percent for the 12-month period ending in March 2018. In March 2017, the increase was 2.2 percent. (See chart 2 and tables A, 4, 8, and 12.)

Private Industry Workers
Compensation costs for private industry workers increased 2.8 percent over the year, a larger increase than the 2.3-percent increase in March 2017. Wages and salaries increased 2.9 percent for the current 12-month period and increased 2.6 percent in March 2017. The cost of benefits rose 2.5 percent for the 12-month period ending in March 2018 and increased 1.9 percent in March 2017. (See charts 3 and 4 and tables A, 5, 9, and 12.)

https://www.bls.gov/news.release/pdf/eci.pdf

1   Heraclitusstudent   ignore (1)   2018 Apr 27, 6:00pm   ↑ like (2)   ↓ dislike (1)   quote        

0.8% by dumping enough trillions of debt money into the US economy....
And oh... a lot of it leaked into the trade deficit. Oh well.
2   TrumpingTits   ignore (0)   2018 Apr 28, 8:56am   ↑ like (0)   ↓ dislike (0)   quote        

So, the Establishment-controlled CBO flat out LIED, then.

Got it.
3   anotheraccount   ignore (1)   2018 Apr 28, 9:53am   ↑ like (0)   ↓ dislike (0)   quote        

WarrenTheApe says
And the trade deficit always goes up when the economy is booming. Economics 101.


Trade usually goes up. Deficit does not have to. Germany is getting a bigger surplus. That's Econ 101 for you.
4   TrumpingTits   ignore (0)   2018 Apr 28, 2:53pm   ↑ like (0)   ↓ dislike (0)   quote        

anotheraccount says
Trade usually goes up. Deficit does not have to. Germany is getting a bigger surplus. That's Econ 101 for you


Germany doesn't have the world's reserve currency. That alone requires the US to run trade deficits. Also, Germany has no choice but to export. Same for South Korea. This is because neither has massive domestic markets than the US does. And most of Germany's exports go to the EU, which is a surrogate domestic market for it.

Nations that produce predominately for their own, large consumer economies always have trade deficits when their economies are booming because a) they produce most of what they need/want domestically and b) import the rest, which is just a small % amount of GDP. US trade (this is imports/exports of goods combined) as a percentage of GDP has historically just been a measily 12% or so in the last twenty five years. Since 2016, it is dropped to 8% and is still dropping because of drastic reductions in oil imports.

This is why the trade deficit in the US is STILL down from prior years despite it rising recently. Again, because we are no longer importing oil and will soon even be a net oil exporter. Same with LNG.

That's facts and logic for you...made possible with my understanding of Economics 101 that go beyond your passing familiarity with just some buzz words. Translation: Had you had an ACTUAL understanding of economics, you would have never have posted what you did nor would I have been able to rip it to pieces so easily as I did.
5   marcus   ignore (1)   2018 Apr 28, 2:59pm   ↑ like (1)   ↓ dislike (3)   quote        

Is this real ? OR does Trump have friends in the bureau of labor and statistics where they calculate this.

Glad to see the affects of 8 years of job growth under Obama are finally kicking in
6   Feux Follets   ignore (0)   2018 May 24, 4:18pm   ↑ like (1)   ↓ dislike (0)   quote        

The percentage of employees who don’t get wage raises; is the Taboo undergoing an “extinction burst”?

The below graph yesterday from the Kansas City Fed. It’s pretty shocking. It represents “wage rigidity.” In english, that means the percentage of employees who don’t get any annual wage increases.

It speaks for itself. Nine years into the economic expansion, with an unemployment rate under 4%, and un underemployment rate of 7.8% (only 1% above its all time low), more workers still aren’t getting any raises than at any time during the 2001 recession or at any time during the expansion thereafter.



And it isn’t simply slack in the labor force. Here’s the employment-population ratio for prime age workers:



This is only 2.7% below its all time peak in 2000, and equivalent to where it was in 2005. But in 2005, about 12.5% of workers weren’t getting annual raises. Even now the rate is about 14.5% — and rising over the past year.

This is the Taboo against raising wages in action.

This is, in psychological terms, a learned behavior.

Even after the advent of “behavioral economics,” the failure of economists to employ explanations of macro level behavior based on the concepts of learning and unlearning remains one of economics’ glaring blind spots.

To refresh, a behavior that is rewarded will be learned over time, and repeated over and over thereafter, even if the rewards become sporadic. And it will even continue for awhile after the rewards are no longer there at all. Not infrequently, before the behavior is given up on, there will be an “extinction burst.”

What is an “extinction burst”? It is the type of wailing, frustrated, foot-stomping, angry outburst that is characteristic of toddler temper tantrums. If you ever watched the show “Supernanny,” you’ve seen it.

The caterwauling of employers that they simply can’t find qualified candidates (unspoken: for the wages they want to pay them) has all of the earmarks of just such a temper tantrum.

For all but a few years in the last 15, many employers became accustomed to having multiple applicants for any job they offered, who had already learned the skills (and presumably been “downsized” or laid off by a previous employer).

To put it simply: this was Marx’s “reserve army of the unemployed.”

Employers were rewarded even if they did not offer any raises. They became accustomed to the success of this practice. In other words, they learned the behavior.

Now the behavior is no longer being rewarded. At the wages previously offered, candidates already skilled at the position are no longer available or applying. Instead, the “quits” rate of employees leaving their jobs for other, better-paying jobs, is near an all-time high.

So what does psychology tell us to expect? An extinction burst.

And that may be just what we are seeing in the soaring number of “job openings” compared with actual hires. Employers who don’t want to raise wages are furiously repeating their learned behavior, trying one last time to make it work.

Full Article: https://angrybearblog.com/2018/05/the-percentage-of-employees-who-dont-get-wage-raises-is-the-taboo-undergoing-an-extinction-burst.html#comments
7   Quigley   ignore (0)   2018 May 24, 6:05pm   ↑ like (2)   ↓ dislike (0)   quote        

If your business model doesn’t allow for paying your workers at least $15/hour, you need to either revise your model or close up shop, as the returns are just too measly to bother with and you’re wasting your time with it.
And yes, if you aren’t paying yourself at least this much, in addition to social security, you should quit doing it. Someone else will provide whatever service you are providing, and probably do it better.
8   APOCALYPSEFUCKisShostikovitch   ignore (30)   2018 May 24, 6:05pm   ↑ like (1)   ↓ dislike (0)   quote        

This fucking cunt is fucking with shareholders.

A real PRECEDENT! will be calling out the National Guard to stop this egregious theft of SHAREHOLDER! VALUE!
9   Feux Follets   ignore (0)   2018 Jun 10, 8:25am   ↑ like (0)   ↓ dislike (0)   quote        

Median Income Has Gone Nowhere Since Recession

While there is a great deal of debate about whether Americans are better off financially since the Great Recession, part of the argument is based on government data.

The U.S. Bureau of Labor Statistics released income data for the first quarter of 2018 recently:

Median weekly earnings of the nation’s 113.4 million full-time wage and salary workers were $881 in the first quarter of 2018 (not seasonally adjusted), the U.S. Bureau of Labor Statistics reported today. This was 1.8 percent higher than a year earlier, compared with a gain of 2.2 percent in the Consumer Price Index for All Urban Consumers (CPI-U) over the same period

By this measure, Americans have made huge progress. In the first quarter of 2009, the comparable figure was $732.

The median weekly data, however, look very different when calculated in constant dollars (1982-1984). In this case, the number for Q1 2009 is $345. For the first quarter of this year, the number is $350. Over the period, the quarterly figure never topped $353, which it hit in Q2 and Q3 last year.

Wages are central to the debate about how the economy has recovered, how quickly it could fall into recession again, and the consumer spending portion of GDP. Roughly two-thirds of GDP is based on consumer spending.

One argument that consumer spending is not and will not be a problem is that from 2009 to the present, prices for most things have risen very little. Essentially, there has been muted inflation. That has started to change recently, particularly in terms of oil and gas, and to a lesser extent food. Oil and gas prices have spiked in the last several months, and the price of gas is at a multi-year high.

Another year of stagnant wages may be the largest drag on the economy, particularly if the cost of living spikes in the second half of the year.

https://247wallst.com/investing/2018/06/09/median-income-has-gone-nowhere-since-recession/
10   PrivilegedtobeWhite   ignore (1)   2018 Jun 10, 8:36am   ↑ like (0)   ↓ dislike (0)   quote        

marcus says
Glad to see the affects of 8 years of job growth under Obama are finally kicking in
Actually, it's the Reagan tax cuts that are finally kicking in. Takes a while.
11   marcus   ignore (1)   2018 Jun 10, 8:57am   ↑ like (1)   ↓ dislike (0)   quote        

I've said all along that I feared inflation is Trumps highest goal. It's probably a big part of his reason for the tarrifs.

He owns a lot of highly leveraged assets.
12   HEYYOU   ignore (13)   2018 Jun 10, 10:32am   ↑ like (0)   ↓ dislike (0)   quote        

Great news for those with pay increases.
Republicans say they cut taxes,give you a raise,you pay more taxes.
13   MisterLefty   ignore (0)   2018 Jun 10, 2:52pm   ↑ like (0)   ↓ dislike (0)   quote        

marcus says
I've said all along that I feared inflation is Trumps highest goal. It's probably a big part of his reason for the tarrifs.

He owns a lot of highly leveraged assets.
But on the plus side, UST yields are heading up, providing stable, risk-free income for retirees.
14   bob2356   ignore (1)   2018 Jun 10, 6:15pm   ↑ like (0)   ↓ dislike (0)   quote        

MisterLefty says
But on the plus side, UST yields are heading up, providing stable, risk-free income for retirees.


I've been wondering about that. SS surpluses have been shrinking steadily sending more Tbills into the financail markets. Something like 2024 there will be no surplus. Not only will every cent of government borrwoing be in the financial markets, SS will have to start redeeming it's tbills which will be even more borrowing on the markets. There is going to be a lot more pressure on tbill yeilds without the SS buffer. I haven't seen anyone do any kind of analysis about this.
15   Booger   ignore (1)   2018 Jun 10, 7:42pm   ↑ like (0)   ↓ dislike (0)   quote        

Feux Follets says
Median Income Has Gone Nowhere Since Recession
.

That's because you have to change employers to get a raise. Everybody knows this.




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