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Chart of the Week: AVERAGE HOURLY EARNINGS

Monday, February 06, 2006 | 02:00 PM

As the 5 year chart below reveals, there has been no wage pressure in the economy over the past 5 years. The most recent drop and snap back late in 2005 is attributed to Hurricanes “Katrita” (So too the revised Nov/Dec payroll data).

AVERAGE HOURLY EARNINGS, (constant 1982 dollars)

Source: BLS

Labor Arbitrage via globalization and outsourcing has put a lid on the growth of wages and personal income across all industries. Union negotiations across numerous sectors (Aircraft Pilots, Auto Workers, Teachers, Police and Fire) have resulted in either flat or minimal increases – in many cases below the inflation level. Job creation continues to be primarily in lower paying positions: food service, health care, and retail (higher paying construction jobs being the exception).

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Quote of the Day
“Wall Street’s graveyards are filled with men who were right too soon.”
-William Hamilton