May 4, 2018

Employment Report: Still waiting for “Godot”

That is, the rise in wages, to the frustration of the Fed, never comes. In fact, there appears to be glaring “inconsistencies”, as the table indicates for wage growth, unemployment and core PCE inflation at selected moments: Wage Unemploym PCE Core Dec 00  4.3%         3.9%             1.8% Oct 09  2.7%          10%              1.3% Apr 18  2.6%          3.9%             1.9% It should also be noted that the drop in unemployment to 3.9% was wholly due to the 236 thousand fall in the labor force. By one measure of labor market tightness – the unemployed plus those not in the labor force but want a… Read More