[lbo-talk] WSJ: Wages Remained Under Pressure In 4th Quarter

[Dwayne Monroe]

Interesting little article which provides more evidence I think (though 
not explicitly) of productivity increases being mostly the consequence 
of workers being multi-tasked to breaking point, wage stagnation and 
hiring freezes.

DRM

=================

Wages Remained
Under Pressure
In Fourth Quarter

By JON E. HILSENRATH
Staff Reporter of THE WALL STREET JOURNAL

In a sign that U.S. corporate profits remained robust in the fourth 
quarter while worker wages were under pressure, the Labor Department 
said the cost to employers of retaining and hiring workers rose just 
0.7% in the final three months of 2003.

But benefit costs continue to creep up, which is limiting the 
willingness of many companies to hire.

The quarterly increase in the employment-cost index -- which measures 
changes in wages and salaries in addition to health, pension and other 
benefits -- was the smallest increase in a year. It translated to a 2.9% 
increase at an annual rate in the fourth quarter.

Mark Zandi, chief economist with Economy.com, an independent 
economic-research firm, said he estimates the productivity of workers 
rose faster than their compensation in the period, at a 5% annual rate. 
That means the labor cost to employers of every unit of output fell 
during the quarter.

"Overall labor costs are still falling and profit margins are still 
rising and corporate earning prospects are still very strong," Mr. Zandi 
said.