Courtesy of Mish.
As a result of a rising CPI real hourly earnings are down 0.1% for the month. Coupled with shrinking work hours, real weekly earnings declined 0.4% for the month.
Hooray!
Please consider the BLS Report on Real Earnings.
All Employees
Real average hourly earnings for all employees decreased 0.1 percent from July to August, seasonally adjusted, the U.S. Bureau of Labor Statistics reported today. This result stems from a 0.1-percent increase in average hourly earnings being more than offset by a 0.2-percent increase in the Consumer Price Index for All Urban Consumers (CPI-U).
Real average weekly earnings decreased 0.4 percent over the month due to the decrease in real average hourly earnings combined with a 0.3-percent decrease in the average workweek. Real average hourly earnings increased 1.3 percent, seasonally adjusted, from August 2015 to August 2016. This increase in real average hourly earnings combined with a 0.9-percent decrease in the average workweek resulted in a 0.4-percent increase in real average weekly earnings over this period.
Production and Nonsupervisory Employees
Real average hourly earnings for production and nonsupervisory employees were unchanged from July to August, seasonally adjusted. This result stems from a 0.2-percent increase in average hourly earnings being offset by a 0.2-percent increase in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).
Real average weekly earnings decreased 0.3 percent over the month resulting from no change in real average hourly earnings combined with a 0.3-percent decrease in average weekly hours.
From August 2015 to August 2016, real average hourly earnings increased 1.8 percent, seasonally adjusted. The increase in real average hourly earnings combined with a 0.3-percent decrease in the average workweek resulted in a 1.5-percent increase in real average weekly earnings over this period.
Prices Up, Wages Down
0.4% Increase in Weekly Real Earnings since last year.
Does it feel like you are getting ahead?
— Mike Shedlock (@MishGEA) September 16, 2016
The bottom line is prices are up and wages are down. This event comes with a big “hip, hip, hooray” for a rising CPI in a separate report from the BLS this morning.
For details on the CPI “good news” please consider Good News For Inflationists: Medical Costs and Rent Surge; Mini-Stagflation Coming Up?
