Wages Are Starting To Rise

Recent reports showed that US employers added 3.1 million jobs in 2014, which was the strongest year of payrolls growth since 1999.  The US unemployment rate fell to 5.6% by the end of 2014, down from 6.7% in December 2013.  The pace of hiring decelerated sharply in the first three months of 2015, but the US unemployment rate still managed to edge down to 5.5% as of March.  A number of larger US companies have announced pay increases in recent months, seeking to attract and retain workers in a tighter labor market.  Up till now US inflation has remained sluggish and wage growth has stagnated since the recession ended in mid-2009.  Economists say that price and wage increases should continue to gain traction as the economy heals, the labor market tightens and employers compete to hire from a shrinking pool of available workers.  

 

Bruce Peacock

Vice President of Business Development              

The Richmond Group USA