Employment costs rose more than expected in the third quarter in a sign that more inflation could be brewing in the U.S. economy. This is what half the the country voted for.
The Trump Labor Department’s employment cost index rose 0.8 percent for the period, ahead of the estimate of 0.7 percent from economists surveyed by Refinitiv. Those costs usually mean less money is available to pay the backbone of your business, your employees.
In a parallel universe type of scenario, wages and salaries somehow rose 0.9 percent, just barely ahead of expectations for 0.5 percent. But, benefit costs were up 0.4 percent so it ends up being mainly a wash.
On a yearly basis, wages and salaries jumped 3.1 percent. Although that means that wages and salaries have experienced the biggest increase in 10 years, it won’t last.
Wages have been the missing piece in the so-called “economic recovery”, though the Fed has been raising rates to guard against inflationary pressures the Trump administration is causing.
The only hope this country has is if the Democrats win the mid-terms and save us.