Jan 31, 2018
Year-Over-Year Private-Sector Wages Match Nine-Year High as Tax Reform Energizes Economy
Post by Freedom Partners
More Americans are working, and they’re earning better wages than they have in years.
According to Wednesday’s Labor Department report, historically low unemployment levels could be prompting businesses to raise employee wages as they compete over a more limited workforce.
“The rise in overall [employment] costs suggests employers may be feeling pressure to raise wages or boost benefit offerings as the supply of available workers shrinks. The unemployment rate has remained at a 17-year low for three months,” The Wall Street Journal reported.
According to the employment-cost index, which is used to measure of wages and benefits for civilian workers, “[w]ages for private-sector workers grew 2.8% last year, tying a nine-year high.”
The news comes on the heels of the pro-growth Tax Cuts and Jobs Act signed into law late last year, which has already resulted in U.S. businesses pledging billions of dollars in new investments and significant bonuses for thousands of their employees; more take home pay and more jobs. And it’s only the beginning.
The New York Times reported earlier this month that “a wave of optimism” is starting to wake up the “animal spirits” of businesses and open the flood gates to new investments, higher wages and more jobs as a result of the new tax law, as well as the Trump administration’s bold efforts to dismantle the many Obama regulatory barriers harming opportunity and growth.