Workers’ wages up, but slower job growth worries financial markets
- 8 years ago
American workers have begun to see a notable pickup in their paychecks after years of stagnation, with wages increasing at their fastest rate since the end of the Great Recession.
Investors' anxieties may have been driven by different, and potentially conflicting, concerns: that job growth was slowing, indicating a softer economy, and that higher wages would spur inflation, leading the Federal Reserve to raise rates.
One key measure did show some improvement: The size of the work force increased slightly, nudging the participation rate up to 62.7 percent after falling last year to the lowest level in a generation.
"Job creation and wage growth need to be far stronger, and they need to remain strong for a longer period of time, before the economy is close to full employment," said Elise Gould, senior economist at the left-leaning Economic Policy Institute.
Investors' anxieties may have been driven by different, and potentially conflicting, concerns: that job growth was slowing, indicating a softer economy, and that higher wages would spur inflation, leading the Federal Reserve to raise rates.
One key measure did show some improvement: The size of the work force increased slightly, nudging the participation rate up to 62.7 percent after falling last year to the lowest level in a generation.
"Job creation and wage growth need to be far stronger, and they need to remain strong for a longer period of time, before the economy is close to full employment," said Elise Gould, senior economist at the left-leaning Economic Policy Institute.