Pethokoukis

Where is the wage growth?

MKM Partnters

MKM Partnters

As MKM Partners economist Mike Darda notes, “Over the last year, average hourly earnings are up 2.1%, about the same range they have been in for several years (thus
suggesting we are not yet below the “natural” rate of unemployment).”

And when you look at the above chart of nominal wage growth — which goes back to 1965 — you see just how unimpressive take-home pay has been.

Follow James Pethokoukis on Twitter at @JimPethokoukis, and AEIdeas at @AEIdeas.

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