Wages Rising; The Invisible Hand Works

03.04.2015
Economy

The U.S. Department of Labor reports hourly earnings for all private nonfarm payrolls rose 2.4% in 2014 (along with a slightly longer work week) to create an effective 3% gain, while the CPI has been struggling to hit 1%.
This is good news for workers, especially those in leisure and hospitality; this sector, which has traditionally low-paying jobs, posted a higher-than-average 3.6% wage gain.
These improvements show that the invisible hand is still working in economics. The market is beginning to correct itself after a long and painful hiatus brought on by a severe recession and a prolonged, subpar recovery.
As we see more job creation and a subsequently tighter job market, we should continue to see hourly wage gains too. We don’t need government to force these changes; the free market will do that all by itself.

Tags:

Leave a Reply

Your email address will not be published.

Stay Connected with CBIA News Digests

The latest news and information delivered directly to your inbox.

CBIA IS FIGHTING TO MAKE CONNECTICUT A TOP STATE FOR BUSINESS, JOBS, AND ECONOMIC GROWTH. A BETTER BUSINESS CLIMATE MEANS A BRIGHTER FUTURE FOR EVERYONE.