Despite Wage Increases, Real Hourly Pay Is Losing To Inflation

CPI vs Hourly Pay Year-Over-Year Change 2021-05

For the second consecutive month, the year-over-year average hourly pay has lost to inflation.

Average Hourly Earnings of All Private Workers Minus CPI-U

Average Hourly Earnings Total Private Minus CPI-U

I created the above chart by taking the year-over-year increase in average hourly pay for all workers and subtracting the year-over-year increase in the CPI.

Both sets of numbers are not seasonally adjusted. CPI-U is the official CPI,

Average Hourly Earnings of Production and Supervisory Workers 

Average Hourly EarningsProduction Minus CPI-W

The BLS has a separate set of stats for production and supervisory workers. Its CPI measure is CPI-W. 

I created the above chart by taking the year-over-year increase in average hourly pay for production and supervisory workers then subtracted the year-over-year increase in the CPI-W.

Net Losers

Both sets of workers are currently losing money to inflation. 

The Great Recession and Covid-19 spikes happened when the bottom rung of workers were laid off in recession, artificially inflating wages if you were working. 

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.