Weekend Economists Celebrate Harry Potter's 35th Birthday July 31st, 2015

[Demeter]

19. Reality Check: US Wage Rises Remain Subdued at 3% or Lower

SOMEBODY GOT A RAISE? AND THEY WEREN'T IN THE 1%?

https://www.marketnews.com/content/reality-check-us-wage-rises-remain-subdued-3-or-lower

U.S. wage growth remains subdued despite a tightening labor market and earlier signs that pay pressures are starting to grow, according to compensation consultants.

New surveys covering actual and planned pay awards by thousands of companies show flat or even declining wages overall despite some higher increases for in-demand fields like computer technology.

Ahead of the second-quarter Employment Cost Index release Friday, compensation consultants said there's no evidence employers are raising pay at a higher rate than in recent years despite steady increases monthly payrolls and a national jobless rate approaching 5%.

"There doesn't seem to be a huge upward pressure on wages," said Kerry Chou, senior practice leader at WorldatWork, a nonprofit human resources organization that tracks pay trends at about 2,000 U.S. companies. "Our data doesn't suggest that the labor market is really heating up or that wages are accelerating."

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