How much money we're making – June 2020
Bottom Line: In today's third story breaking down the employment report we'll look at what ordinarily is the fun stuff...how much more money we're making. There’s a huge storyline which is played out in the monthly breakout of incomes. For those who were working in May, they generally were being paid well and able to work more hours. After a record setting average hourly wage in April, with lower paying service sector jobs shedding the most jobs during the shutdown, May saw the second highest average hourly wage recorded. Here’s are the details.
The average hourly wage for all Americans is currently $29.75. With an average work week, which rose during for those employed during May to 34.7 hours, the average income is now $53,680. That’s $311 more than the prior month. While the average hourly wage was lower during the month, the increase in hours worked for those working was more than enough to offset the decline in hourly earnings. We have a new record high for monthly incomes.
Here are the details:
- Earnings - 29 cents over prior month
- +6.9% year over year
- Average person working is earning $3,898 more than a year ago
This shows the personal view of the possible for a V shaped recovery in the economy. Those who do have employment have never earned more. More than half of those unemployed are receiving more on unemployment than they were while working due to the stimulus checks and three months of additional enhanced unemployed benefits. There is a clear path for a strong resurgence in the economy when this report is looked at in full context. It’s not a certainty that it will happen but unlike last month when we didn’t know what to expect, it’s fully possible. In the meantime, the good news is this. For those who are working full-time, which is still most of the country, wages and hours are intact. As I mentioned a month ago in my summary...there’s room for optimism here if we look for it.