Hourly Earnings for February 2021

Hourly Earnings and Real Hourly Earnings 2021-02B

The above table is courtesy of the BLS

February 2021 Details 

  • Average hourly earnings rose from $28.51 to $30.01, an increase of $1.50 an hour. 
  • You only saw $0.38 of that because inflation-adjusted wages only rose from $11.02 to $11.40.
  • Real average hourly earnings declined in the last two months.
  • Hooray! In January your weekly pay rose. However you had to work more hours to get that because you lost money on a per hour basis.
  • Boo. In February your weekly pay declined by a full percentage point because your real pay per hour declined and you also worked fewer hours on average.

Congratulations On Your 13 Cents!

I downloaded all the data and calculated how much more you are making today per hour, on average, inflation adjusted back to the beginning of the data series in 1964. 

Since January 1973, real wages for production and supervisory workers rose by 13 cents per hour. 

Curiosities

In nominal terms the average production and supervisory worker made $4.03 in 1973 which the BLS says was really worth $9.44. 

This has to do with the inflation index date set to 1982-1984 at 100.

Anyway, spend your 13 cents per hour increase wisely because home price are not even in the CPI. 

For discussion, please see Inflation Fears Recede After Another Tame CPI Report, Pause in the Storm?

Mish

Congratulations Workers! You Make a Penny More Per Hour Than Last Month

The average worker makes a penny more per hour than last month in real terms. The year-over-year gain is precisely zero.

Congratulations Workers! You Make One Penny More Than a Year Ago

Real wages for production and nonsupervisory workers are up precisely one penny per hour from January of 2017.

Congratulations Workers: You Make 0.3% More Per Hour Than One Year Ago

In real terms, workers make 0.3% more per hour than a year ago, assuming one believes the BLS CPI Statistics.

Congratulations Workers, You Now Make 0.5% More Than a Year Ago

In real (inflation-adjusted) terms workers make 0.5% more than a year ago, assuming one believes the CPI.

Real Hourly Earnings Scorecards: Employees Making Way Less Than 9 Months Ago

Hourly wages, in real terms, have been on the decline for nine months.

Real Hourly Earnings Decline YoY for Production Workers, Flat for All Employees

Today's CPI report that shows inflation rose only 0.1%. Real wages are not keeping up even with that.

Congratulations! BLS Says You Make 2.33% More Than Last Year: Does That Cover the Bills?

Economists keep expecting a big boom in consumer spending. They also expect a huge wage-price spiral. I expect neither. Let’s investigate.

Real Hourly Earnings: Assuming You Believe the CPI

In the past year, real wages rose eight months, fell once, and were flat three times.