Money Wages

Chart of the Day: Wage Growth Continues to Collapse in the US and Globally

Wage growth continues to collapse in the US and globally as well. See the full November 2022 jobs here.

This recent wage growth has been the trend. Low-interest rates, Covid-related supply constraints, and strong consumer spending partly fueled by generous stimulus checks had already put upward pressure on prices before Russia’s invasion of Ukraine. The war’s severe impact on fuel and food prices has further fanned the flames, turning an inflation scare into a global crisis.

As the following chart shows (and learn more here), inflation has now been outpacing nominal wage growth for 18 months straight, meaning that Americans can afford less than they could a year ago, despite wages rising on paper. While average hourly earnings climbed 5.0 percent from $30.92 to $32.46 over the past 12 months, consumer prices soared 8.2 percent on a seasonally adjusted basis, resulting in a 3-percent decline in real hourly earnings.

US Global Wages 2022

The low wage growth problem is not just in the US. The global inflation crisis, paired with lackluster economic growth and an outlook clouded by uncertainties, has led to a decline in real wages around the world, a new report published by the International Labour Organization (ILO) has found.

As Statista’s Felix Richter reports, according to the 2022-23 Global Wage Report, global real monthly wages fell 0.9 percent this year on average, marking the first decline in real earnings at a global scale in the 21st century. See this in the chart below and learn more here.

Global Wages 2022

Even though many have touted low unemployment numbers in the US, it has come at the cost of declining wage growth. The reality is the more one debases the currency, as the Biden administration has done (see more here), wage growth continues to decline.

See more Chart of the Day posts.

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 RWR original article syndication source.

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Written by Tom Williams

Born down on the farm in America's Midwest, my early life was spent climbing the ladder via a long career in information technology. Starting as a technician, and after earning a degree going to night school, I eventually found a place working at ATT Bell Laboratories as a software engineer.

Later moving into management and then a long stint in a major management consulting firm working with major banking, telecommunications, and retail companies. Working in various states in America, I also spent considerable time living and working in several European countries - currently expat in France. As a side career, I was heavily involved in real estate development and an avid futures trader. This experience can give one a unique view of the world.

The storm clouds of dark change are near. Today America is at a crossroads. Will it maintain its prowess as a national leader in the free modern advancing world, or will it backtrack in the abyss of the envy identity politics of tyrannical socialism, and the loss of individual freedoms. The 2020 election may have decided this. Join the Right Wire Report team and make a stand.

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