Washington, DC - CNBC: “Wages and salaries jump by 3.1%, highest level in a decade”
October 31, 2018
- Wages and salaries rose 3.1 percent in the third quarter, the biggest increase in a decade, according to the Labor Department.
- Overall compensation costs were up 2.8 percent, ahead of Wall Street expectations.
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Wages and salaries rose 0.9 percent, well ahead of expectations for 0.5 percent. Benefit costs were up 0.4 percent.
On a yearly basis, wages and salaries jumped 3.1 percent, the biggest increase in 10 years.
Wage increases have been the missing link in the economy since the recovery began in mid-2008. Average hourly earnings have been rising steadily but have stayed below the 3 percent level as slack has remained in the labor market.
However the unemployment rate is now at 3.7 percent, the lowest since 1969, and wage pressures have begun to build.
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The wage data came the same day that ADP and Moody’s reported private payroll growth of 227,000 in October, easily beating Wall Street expectations. The combination of news sent Treasury yields higher in morning trading.
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