Part 3 - How much (more) money we're making - August 6th
Bottom Line: In today's third story breaking down the employment report we'll explore real incomes. The average hourly wage for all Americans is currently $27.05 and with an average work week of 34.5 hours the average income is now $48,528 - an improvement of $126 from a month ago). Here are the highlights:
+7 cents per hour (month over month)
Real incomes have risen by $1,274 year over year
+2.7% year over year increase in hourly earnings
We're still not quite in that 3%+ territory but we're not far off. By the time bonuses are added in we actually are pacing a number that'd be 3%+ overall. Add in the benefit of the Tax Cut and Jobs Act and the average person is making about $1,300 more than this time a year ago while saving just over $1,800 on federal income taxes as well. What does that mean?
The average net take home pay year over year has increased by 6.5%
That remains the best in over 32 years. For most that claim not to have seen the benefit of the tax cuts – it's because withholding adjustments haven't been appropriately made – not because they're not set to receive the benefit. There’s an estimated 30 million people in this category. That'll all be reconciled by tax time next year but it's a reminder to look into making adjustments sooner if that's your situation.
My summation statement from last month:
We're still set up for the best summer hiring season in over a generation. With a record number of job openings and the class of 2018 ready to enter the workforce, I'd expect to see a strong start to summer that accelerates through the summer.
With a net 216,000 jobs added... I’d say it delivered. Expect more of the same going forward. There's still not much material impact from the trade and tariffs concerns that's tangible in the labor market at this point.
Until next month...