America has seen the highest amount of wage growth it has seen in many years, "median weekly earnings increased by more than 10% in the second quarter over the same period last year"(Bloomberg, 2020). How can that be? The reason why it is so high is because the pandemic and the ensuing statewide lock-downs disproportionately affected low income jobs more than higher paying jobs. When you knock out these low paying jobs from the calculations, the results tend to skew high. This is why it is important to examine these news releases about the economy with an extra close eye; the numbers do not really mean anything without proper context. So when these jobs are added back into circulation, the wage growth number is going to go down, and when that happens we have to look at the context as to why it went down.
https://www.bloomberg.com/news/articles/2020-08-31/fed-study-shows-low-income-pandemic-job-losses-skew-wage-growth
No comments:
Post a Comment