August Jobs Report: Wage Growth Where It Matters Most
Low- and middle-wage industries saw wage growth pick up this month. Overall, the report shows the continued strength of this recovery.
This month workers saw their biggest wage growth in the course of this recovery at 2.9%. While it remains to be seen if that growth continues, it seems plausible that wage pressures are increasing.
Looking at who got the wage growth this month, workers in both low- and middle-wage industries saw wage growth improve faster than its year-over-year pace.
Once again the economy continues to grow at a pace one would not have expected a few years ago given how far we are into this economic recovery, creating over 200,000 jobs this month. We just hit a record 95th straight month of job growth. A one-month loss in manufacturing jobs should not cause anyone to worry that tariffs are starting to hit that sector…yet.
The strength in job growth means that this year, the percentage of workers who want a full-time job but are stuck in a part-time job has seen remarkable improvement. It has fallen 0.4 percentage point this year, finally nearing its pre-recession low.
Overall, this is an incredibly exciting report and shows the continued strength of this recovery.