WASHINGTON–As the US economy has steadily recovered from the Great Recession, the critical missing piece has been a painful lack of pay raises for many Americans.Their pain may be easing.Friday's jobs report signalled that raises have finally begun to flow through an economy in which, once you factor in inflation, most people earn less than when the Great Recession struck in 2007.
The average hourly wage jumped 0.5 per cent between December and January–the sharpest monthly gain since 2008–the government's survey of businesses found. The average has now risen 2.2 per cent over the past 12 months to US$24.75, comfortably above inflation.Skeptics still have doubts. But the quickening rate of hiring provides reason to hope.
The government's figures don't pinpoint which occupations have benefited most from rising pay. Wages have risen at a slightly slower pace for non-managers, indicating that bosses are pocketing much of the gains. Still, corporate announcements and job postings indicate that wage growth has been extending to a broad range of industries and professions.
AP