(National Sentinel)Â Payday: Any way you cut it, the pro-growth policies of the GOP-controlled Congress and POTUS Donald Trump are helping Americans of every socioeconomic class.
According to the most recent data, wages and salaries grew at 0.9 percent in the third quarter, beating expectations of 0.5 percent,Â CNBC reported this week.
The rise brings yearly growth in wages to 3.1 percent, which is the biggest increase in 10 years.
Meanwhile, the unemployment rate is helping drive up salaries. At 3.7 percent, the country is essentially at full employment. Companies are being forced to raise wages in order to attract quality workers.
The unemployment rate is the lowest its been since 1969.
Meanwhile, employment costs also rose — 0.8 percent — which economists say could trigger some inflation.
“The employment cost index data adds to the broader evidence that wage growth has continued to trend gradually higher over recent quarters,” said Michael Pearce, senior U.S. economist at Capital Economics. “And with labor market conditions still tightening, we expect wage growth will accelerate further from here.”
Wage growth had been sluggish throughout the current recovery period, but as the labor market remains tight companies have had to boost pay in order to compete for workers.
Wages are grinding higher as the labor market continues to tighten,” said Justin Weidner, an economist at Deutsche Bank, the Washington Free Beacon reported. “Wage growth is likely to be over 3 percent again soon.”
The Labor Department will release average hourly earnings, which are expected to rise above 3 percent for the first time in a decade, on Friday.
“How hot is the labor market? Hot enough for employers to pony up some more cash to get workers to come work for them,” wrote Chris Rupkey, the chief financial economist at MUFG Union Bank, the WFB reported.
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