US workers are getting wage increases out of the Trump economy--They are now at a 10 year high
U.S. workers saw the largest increase in wages and benefits since September 2008, according to a new report from the Labor Department on Tuesday.As is usually the case, public sector wages are lagging behind the private sector. In a down economy, public sector wages tend to outperform the private sector. One of the reasons for that is public sector income also tends to lag the private sector when teh economy takes off.
The employment cost index, a gauge of total compensation for civilian workers, increased 0.6% in the second quarter. The cost of pay and benefits jumped 2.8% in the 12-month period ended in June, the highest yearly growth rate in nearly a decade.
Wages alone gained 2.8% over the past 12 months, which also reflected a near 10-year high.
Growth in benefits outpaced wages in the second quarter. Wages were up 0.5%. Benefits, which cover health care, retirement plans and other items, jumped 0.9%. That marks the fastest pace in four years.