Part 3 - How much (more) money we're making - October
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 $27.24 and with an average work week of 34.5 hours the average income is now $48,869, an improvement of $341 from a month ago! Here are the highlights:
- +8 cents per hour (month over month)
- Real incomes have risen by $1,310 year over year
- +2.8% 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 well north of 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 6.7%
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.
Here’s the bottom line. We have one of the best job markets in the history of our country. For many demographics it is the best ever. Additionally, wages are rising, bonuses are rising and the economy appears to continue to be gaining momentum. This is what a good US economy looks like. It’s been 13 years since we had an economy we could even compare this one to, but there are vast differences between now and then. For a whole generation of adults, Millennials, they’re finally experiencing what our economy and country has to offer.
Until next month...