The BLS reports the CPI for all items rose 0.1% in June, up 2.9% over the last 12 months. The index for all items less food and energy rose 0.2 percent in June (SA); up 2.3 percent over the year (NSA).

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Real Wages

Even if one accepts the BLS CPI numbers, Real Wages are not keeping up.

Production and Supervisory Workers

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  • From June 2017 to June 2018, real average hourly earnings decreased 0.2 percent, seasonally adjusted.
  • Combining the change in real average hourly earnings with a 0.3-percent increase in the average workweek resulted in no change to real average weekly earnings over this period.
  • Production and supervisory workers make 2 cents less per hour than a year ago.
  • Look at the bright side. That's up a penny from last month. And by working more hours, they get the same pay.

All Workers

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All workers are doing better. They are no worse off than last year but no better either.

Averages vs Median

Averages are a poor way of looking at things. Pay increases are slanted towards the top end. The median worker in both classes is way underwater from a year ago.

Those who are in school or have private medical insurance, and those who are looking to buy a home are getting killed by the Fed's inflationary policies.

Mike "Mish" Shedlock

Real Hourly Earnings: Assuming You Believe the CPI

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

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.

Labor Productivity Up, Real Hourly Compensation Down

Labor productivity is inching along. Real wages are not keeping up.

Hooray! Your Real Earnings Declined in August

The BLS Real Earnings Report for August shows your average earnings decreased 0.3% for the month due to a rise in the CPI coupled with no wage gains.

Productivity Up 2.9% - Real Hourly Earnings Down: Thank You Fed!

Productivity for the second quarter rose 2.9%. Year-over-year inflation-adjusted hourly earnings are down.

Real Wages Decline Year-Over-Year

Wages are not keeping up with consumer price inflation. The average worker is worse off than a year ago.

Real Hourly Earnings Decrease 0.1%, Real Weekly Earnings Drop 0.4%, Hooray!

As a result of a rising CPI real hourly earnings are down 0.1% for the month. Coupled with shrinking work hours, real weekly earnings declined 0.4% for the month.

What are the Real Reasons for Declining Productivity?

Economists debate whether the decline in productivity is real. It is real. let's investigate 10 reasons why.

Real Wages Decline in December, Barely Up From Year Ago

Real wages for production workers fell 0.2% in Dec. Real wages for all employees fell 0.1%. Both barely up from yr ago.