The New York Times Asserts That "The Wage Picture – And What It Says About The Economy – Is Still Cloudy." (Editorial, "Weighing In On Wages," The New York Times, 11/22/06)
America's Wage Growth Is Steady And Strong
Real Wages Have Risen 2.8 Percent Over The Past Year, Which Means An Extra $1,687 For The Typical Family Of Four With Two Wage Earners. This data is specifically for production and non-supervisory workers, about 80 percent of the workforce – the supervisory workers who tend to earn more are not included.
The National Unemployment Rate Has Dropped To 4.4 Percent – The Lowest Rate In More Than Five Years.
Over The Past Three Months, America Has Added 470,000 New Jobs, For A Total Of More Than 6.8 Million New Jobs Since August Of 2003.
Consumer Prices Fell For The Second Straight Month In October. "Consumer prices, helped by another huge decline in gasoline pump prices, fell for a second straight month in October, providing more relief to Americans battered earlier in the year by soaring energy costs. The Labor Department reported Thursday that consumer prices dropped by 0.5 percent last month, matching the September decline." (Martin Crutsinger, "Gas Prices Help Consumer Prices Fall," The Associated Press, 11/16/06)
Energy Prices Fell 7 Percent In October. "Energy prices were down 7 percent last month. For the year to date they were down a seasonally adjusted annual rate of 1.5 percent after surging 17.1 percent for all of 2005, the Department said." ("Consumer Prices Down 0.5 Percent In October," Reuters, 11/16/06)
Core Inflation Marked The Smallest Gain In 13 Months In October. "And core inflation, which excludes volatile energy and food prices, was also well-behaved, rising by just 0.1 percent, the smallest gain in 13 months." Martin Crutsinger, "Gas Prices Help Consumer Prices Fall," The Associated Press, 11/16/06)
Source: Labor Department (2006 Data Are For 12 Months Ending In October)/Mark Trumbull, "A Brisk Rise In American Wages," The Christian Science Monitor, 11/20/06