Notes on the Atrocities
Like a 100-watt radio station, broadcasting to the dozens...


Friday, December 05, 2003  

I'm going to be fairly quiet about matters economic for the next year--because they baffle me. I just know what I read in the funny papers, or in this case, on the blogs of straight-talking economists. Reflecting on the economic news today, Max Sawicky has a couple of good posts for the ignorant like me. He also points to a source that reveals a dark picture on wages.

The unemployment rate has remained between 5.6% and 6.4% since the recovery began two years ago, and this sustained period of relatively high unemployment has led to diminished growth of hourly wages (see figure). Since November 2002, hourly wages are up 2.1% (approximately the rate of inflation), the slowest annual growth rate since March 1987. On a quarterly basis, wages are growing at an annual rate of less than 1.0%, well below inflation. Thus, despite high productivity and profits, many workers are losing ground in the current labor market. (Itals mine.)

In other words: things could be better.

posted by Jeff | 12:28 PM |
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