Pedro da Costa: Wage growth should be much stronger by now given low jobless rates: "Federal Reserve policymakers who continue to argue they must keep pushing interest rates higher in earnest because the unemployment rate is so low that it risks generating runaway inflation as workers ask for big pay raises...

...The unemployment rate is at 3.9% and average hourly earnings rose 2.9% last month, the strongest since the Great Recession. But that pace of income gains is still paltry compared to past recoveries.... "Full employment means employers should really be begging for workers rather than workers begging for jobs," said Josh Bivens.... "The definition of full employment is low- and moderate-wage workers actually get raises. We are not at full employment until that happens. If that's not happening, that means we should push unemployment lower. That means we are not at full employment yet." Take this startling statistic: Excluding more highly paid managers and supervisors, who make up 20% of the workforce, workers actually saw [real] hourly wages slip 0.1% over the last year....


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#monetarypolicy

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