According to recent U.S. Labor Department data, hourly pay for American workers rose significantly in January. Specifically, average hourly earnings increased by zero point five percent to twenty five dollars and thirty nine cents. January marked the second best one month gain of the current expansion, which traces back to two thousand and nine.
Over the past year, hourly wages are up two point five percent, again one of the best performances since the onset of recovery. But as reported by the Wall Street Journal, there are a few things one should consider when interpreting the data.
First of all, Januaries generally tend to be associated with wage increases. This may be because many employers implement wage and salary increases to coincide with the New Year. Moreover, the minimum wage rose in fourteen states to start the year.
For instance, minimum wage levels in California and Massachusetts rose by a dollar to ten dollars an hour. According to the Economic Policy Institute, about four point six million people realized an increase in their first paycheck because of minimum wage increases, about three percent of the workforce.
The data also indicate that managers are receiving faster compensation increases than production and non-supervisory workers.
