How much money we're making – February 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 $28.44. With an average work week of 34.3 hours, the average income is now $50,511. That’s $215 more than the prior month and the average hourly rate is a new record high.
Here are the details:
- Earnings +7 cents over prior month
- +3.1% year over year
- Average person is earning $1,068 more than a year ago
This continues to be a great news story that keeps getting better. Record wages that continue to grow much faster than the rate of inflation. And, to start the new year, an acceleration of the rate of wage growth. In other words, not only did we see some of the best jobs growth in years, we saw wages hit record highs and the rate of wage growth grow at the same time. It’s almost impossible to get everything moving in the same direction at the same time but that’s exactly what we have here. It’s simply exciting to see. This continues to demonstrate the average American’s standard of living continuing to improve overtime.
It’s important to remember that this is happening and working due to less regulation and lower tax rates. That’s especially important in Florida this year. Last month 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 $28.44, 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.