While the April figure shows a respectable gain, the average hourly wage has risen at just a 2.1 percent annual rate over the last three months, well below the rate of inflation. The lowest paid segments of the labor force continue to be hit hardest. Over the last year, the wage gains in retail trade and leisure services have averaged 1.8 percent and 1.7 percent, respectively ... With higher interest rates likely to slow the housing sector, a new source of demand will be badly needed.
On Fri, 7 May 2004, Doug Henwood wrote:
> This morning's U.S. employment report blew past all expectations. Not
> only was the headline gain of 288,000 jobs very strong, the last two
> months' numbers were revised upwards. The nooks and crannies look
> strong too. Looks like the jobless recovery is consigned to the ash
> heap.