Tuesday, March 06, 2007

U.S. Wages Skyrocketing

Like past economic cycles strong economic and corporate growth leads to higher wage growth. So all the naysayers have relingquished first the "jobless recovery", and now the "unequal recovery" arguments that are going the way of the dodo bird.

Worker Productivity, Salaries Increase

Worker Productivity Jumps 1.6 Percent; Employee Wages, Benefits Climb 6.6 Percent

WASHINGTON (AP) -- The efficiency of workers rose at a modest pace in the final three months of last year, far below the gain originally estimated, while worker wages and benefits soared.

....The report showed that labor costs for each unit of output soared by 6.6 percent, far higher than the 1.7 percent increase initially reported.....

.....It was the biggest quarterly increase in labor costs since a 9.1 percent surge in the first three months of 2006. Both gains were attributed in large part to big bonuses paid to high-income workers....

Associated Press - By Martin Crutsinger, AP Economics Writer

Link to story here

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