Posted on 06/04/2021 4:39:44 AM PDT by blam
Hourly compensation soared much more than expected in the first three months of the year, even as millions of Americans remained on unemployment roles or out of the workforce, data from the Bureau of Labor Statistics showed Thursday.
Hourly compensation jumped 7.2 percent in the first quarter, according to the BLS’s revised estimate of labor costs and productivity. This had been reported as rising 5.1 percent in the first estimate.
Adjusted for inflation, hourly compensation rose 3.3 percent, more than twice the 1.3 percent originally reported.
Wage pressure was higher in manufacturing, where compensation now seen as jumping 8.9 percent nominally, compared with the 4.6 percent estimated earlier. Inflation adjusted compensation rose five percent, up from the earlier estimate of 0.9 percent.
Durable goods manufacturing compensation jumped 11.7 percent versus 6.2 percent in the earlier estimate. Inflation-adjusted compensation rose 7.6 percent versus 2.4 percent previously estimated.
Compensation costs include wages and salaries, supplements, employer contributions to employee benefit plans, and taxes.
The upward revisions in compensation were not accompanied by similar upward revisions in output. The growth in business output remained unchanged at 8.3 percent, reflecting the reopening of the economy. Manufacturing output was revised lower to a 1.4 percent gain, down from 2.3 percent.
Rising compensation is typically a good sign for workers but can add to inflationary pressures, particularly when the rise of compensation outpaces the output of businesses. Higher prices can wipe out any benefits to the bottom lines of American households from rising compensation.
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(Excerpt) Read more at breitbart.com ...
Folks being pushed to go back to work.
Folks get hired as needed
Now 2 people on the widget assembly line instead of one.
“Oh my goodness, my labor costs have doubled!”
“Unexpected”
Productivity isn't.
Why are you getting so upset? All Joe has to do is to implement his wage and price control program. In DC we trust.
Me upset?
Not a chance.
The more Joe Dementia screws up, the happier I am.
You hear all this talk about inflation, but near the end of the year when the Feds announce the yearly inflation for purposes of figuring Soc. Sec. increases, then it seems to be quite low. The Soc. Sec. recipient knows his costs have gone up more than his usual measly raise, so he just has to wonder how it is figured. I guess it depends on what the Feds decide is “essential goods & services” & their math is sure different than mine. It was about the same way when I was still working. There was inflation then as well, but as I recall, it had been 10+ years since I had received any kind of a raise, including any cost of living increase. Something seriously wrong here somewhere.
Liberals live in a world of “unexpectedly”.
We live in the world of “I told your sorry *ss so.”
Increased labor costs does not mean that workers are getting more money. In this case it likely means that productivity has dropped.
Wait, what?
Forcing lower wages higher, by minimum wage laws, and printing trillions of dollars.... those increase inflation???!?
Who knew!
Sounds good to me.
Why is it that we always have to put a negative spin on everything?
The talking points are out. The ONLY reason people aren’t going to work is because companies aren’t paying a “living wage” that can compete with funemployment and that capitalism is to blame.
Transitory
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