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TomCADem

(17,387 posts)
Sat Jan 26, 2019, 11:18 PM Jan 2019

PayScale Report on Real Wage Growth runs Counter to the latest Bureau of Labor Statistics data

https://www.marketwatch.com/story/despite-wage-growth-the-average-american-suffers-as-cost-of-living-rises-at-a-faster-pace-2019-01-10

Real wages effectively declined in 2018, according to figures released this month from the PayScale Index, a formula from the Seattle-based salary comparison site. PayScale said the median wage increases, when adjusted for inflation, were only 1.1% since last year and 1% over the past year. “However, the modest uptick in nominal wages failed to bring real wages out of the red for the year,” it said.

In fact, when adjusted for cost of living increases, real wages actually declined 1.3% since the end of 2017, PayScale said in a report this month.

That runs counter to the latest Bureau of Labor Statistics data, which showed an annual increase of 3.2% in average hourly earnings in December, but that’s before accounting for inflation. The PayScale data also stand in contrast to otherwise encouraging news about the labor market. The U.S. unemployment rate remained near a 49-year low of 3.9% in December.

PayScale looks at median, not average wages, “so outlier growth doesn’t bias the results,” though it does not dispute the results of the Bureau of Labor Statistics. “A decline in real wages means the average person can purchase even less today than they could last year when wages are measured against inflation,” said Katie Bardaro, chief economist at PayScale.
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PayScale Report on Real Wage Growth runs Counter to the latest Bureau of Labor Statistics data (Original Post) TomCADem Jan 2019 OP
You got just love the way Donnies Wellstone ruled Jan 2019 #1
Income Inequality Grows Midnightwalk Jan 2019 #2
My very first full time job was in the summer of 1965. PoindexterOglethorpe Jan 2019 #3

PoindexterOglethorpe

(25,841 posts)
3. My very first full time job was in the summer of 1965.
Sun Jan 27, 2019, 02:08 AM
Jan 2019

It was a sub-minimum wage job, and paid $1.10/hour. I was a nurse's aid at a hospital in my city, and I was honestly shocked to learn that some of my fellow nurse's aids were supporting families. At the time I'd just graduated high school and saved most of my paycheck to finance college. I attended a state university in the city I lived in, and lived at home while I took classes. All this is to spell out how my expenses simply weren't all that great.

I quit college after the first semester, and soon found a job at the local credit bureau. The federal minimum wage back then was $1.25/hour. It was enough to allow me to move out from home, rent a very small apartment, walk to and from work -- owning a car was completely out of the question -- and survive. Not long after, the federal minimum wage went up to $1.60 (maybe $1.65/hour) and that made a noticeable improvement in my life.

Here's what I want to say. I was single. Living on my own, in a relatively low cost of living city (Tucson, AZ) and I was still struggling. I had zero debt. Credit cards didn't exist yet. But it was all I could do, exactly what I could do, to pay my rent (I don't recall for sure, but I believe my utilities were included in my rent), buy food, have a small amount of entertainment, such as going to a movie. There was simply nothing left over, and I, at the risk of repeating myself, was single.

Most of my early years of employment I earned very little money, and was very aware of fellow workers who had families. I never quite understood how they made it.

Life at the bottom is far harder than people who have never been there have any idea.

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