Real Wages Decline 12 Times in the Last 14 Months

Real Hourly Wages data from BLS chart by Mish

Key Points

• For all workers, real (inflation-adjusted) wages declined nearly 0.8 percent in February.
• For all workers,realwages declined for the 12th time in 14 months.
• For production and nonsupervisory workers, real wages declined nearly 0.6 percent in February.
• For production and nonsupervisory workers, real wages declined for the 10th time in the last 14 months.

Consumer Price Index Month-Over-Month

CPI data from BLS chart by Mish

The CPI has been on a tear. It is rising faster than wages for over a year accounting for the drop in real wages.

Consumer Price Index Year-Over-Year

CPI data from BLS chart by Mish

Year-over-year the CPI is up 7.9%. 

Real Wages Year-Over-Year Percent Change

Real Wages Year-Over-Year data from BLS chart and calculations by Mish

Real Wage Key Points 

• Real year-over-year wages have fallen 11 times in the past year. 
• For all employees, real wages are down 2.58% in the past year.
• For production and nonsupervisory workers, real wages are down 1.86% in the past year.

Hourly Earnings and Real Hourly Earnings Since 1964

Hourly Earnings and Real Hourly Earnings Since 1964 - Data BLS - Chart and Calculations by Mish

Key Hourly Earnings Points 

• In February of 1973 real hourly earnings for production and nonsupervisory workers were $9.38 per hour. 
• In February of 2022 real hourly earnings for production and nonsupervisory workers were $9.63 per hour. 
• In the last 49 years, real hourly wages have risen by a grand total of 25 cents per hour. 

In the last 49 years wages have risen about half of a penny per hour per year, and that assumes you believe the CPI is accurate. 

The Benefits of Running the CPI Hot

Meanwhile, Fed jackasses, especially Chicago Fed President Praises the "Benefits of Running the Economy Hot"

Inflation benefits those who hold assets and those with first access to money. 

The rest benefit by a half-penny per hour for 49 years. The upcoming demand destruction from this policy and the pending stock market crash will be massive.

No one will be praising the Fed after this debacle.