How much money we're making – January 2020
Bottom Line: In today's third story breaking down the employment report we'll look at the fun stuff...how much more money we're making. The average hourly wage for all Americans is currently $28.32. With an average work week of 34.3 hours, the average income is now $50,511. That’s $94 less than the prior month as the average hours worked slightly decreased in December – however the average hourly rate was a new record high.
Here are the details:
- Earnings +3 cents over prior month
- +2.9% year over year
- Average person is earning $1,212 more than a year ago
This continues to be a generally great news story. Record wages that continue to grow much faster than the rate of inflation. This continues to demonstrate the average American’s standard of living continuing to improve overtime. The only slight draw back was slightly fewer hours being worked by the average person during December. Had hours stayed steady we would have experienced across the board records once again. Still entering 2020, for the first time in American history the average fulltime employed person is earning more than $50,000 on back of record high hourly wages.
Last week the Florida Chamber Foundation identified the proposed constitutional amendment which would raise the Florida minimum wage to $15 per hour as the greatest long-term threat to our state’s economy. Not only do I agree with their analysis, record high hourly wages, currently at $28.32, illustrate a point about the lack of a need for minimum wages generally. No minimum wage in the country tops $20 per hour. The federal minimum wage is $7.75 per hour. In other words, the government doesn’t have to mandate significantly higher wages. Supply and demand for talent in the workforce does the job naturally and consistently is producing new record highs in this record setting economy. It’s worth remembering come November in Florida.