The Traderszone Network

Published in TZ Latest News 9 January, 2015 by The TZ Newswire Staff

No, strong labor markets don’t cause higher wages (never reason from a quantity change)

The first Friday of every month I listen to all the “experts” on CNBC discuss the new jobs numbers. Today they were stunned by the fact that the recent upsurge in job creation has been accompanied by a slowdown in wage growth.  We got a 252,000 figure this month, and another 50,000 from the previous two months.  When all the revisions are finally in we’ll have about 3 million payroll jobs in 2014, well ahead of 2012 and 2103.  Yet wage growth for last month was revised down from 0.4% to 0.2%, and this month came in at negative 0.2%.

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