US pay and benefits rose by most in 6 years last year

[Omaha Steve]

Source: AP-Excite

By CHRISTOPHER S. RUGABER

WASHINGTON (AP) — Wages and benefits rose at the fastest pace in six years last year, a sign strong job gains could be forcing companies to pay a bit more for workers.

The Labor Department said Friday that the employment cost index, which measures pay and benefits, rose 2.2 percent in 2014, up from 2 percent the previous year. That's the biggest gain since 2008. It's also ahead of inflation, which rose 1.3 percent.

Yet the increase is still sluggish by historical standards. In a healthy economy, the index usually rises at about a 3.5 percent pace.

The Federal Reserve is closing watching wages as it considers when to raise the short-term interest rate it controls. Fed Chair Janet Yellen considers rising wages a key sign that the job market is nearing full health. Higher pay can also push up inflation, which typically prompts the Fed to raise interest rates.

FULL story at link.


Read more: http://apnews.excite.com/article/20150130/us-employment-cost-08689b22c8.html

[davidthegnome]

1. Hmm.

While I'm happy for anyone who's pay or benefits went up, the trend in my neck of the woods seems to be going in the opposite direction. My girlfriend's employer just reduced her pay from 8.50 an hour to Maine's minimum wage of 7.50 - and she's college educated with a degree in business administration. Apparently, the reason for this reduction was that the owners didn't want to keep paying 8.50. That was it. Being in a right to work state and so on - this is completely legal - and they did it without any notice, so she didn't even realize until her second paycheck following the cut - that her pay had actually been cut. I'm sure management just "forgot" to tell her about it. She works for a hotel up here.

As for me... my previous job was also at a hotel. I earned eight dollars an hour for a year. I asked my employer for a raise of 50 cents an hour, as I was learning to do my job pretty well - and there were no other benefits available to me. He refused - so I started working somewhere else - at the urging of a friend who told me that I would be "treated right" if I worked hard.

Started out well enough, they started me at 8.50 an hour. Now I've been there about half a year, working weekends - about 30-32 hours between friday afternoon and sunday night. Thing is... part time workers are not eligible for any benefits. It's a job that I do pretty much by myself (gas station clerk) and that requires a lot of moving and lifting on my part. If I was still 18, I'd say that was an awesome job for 8.50 an hour, for this area.

Getting older now though... with some college, a crap load of work experience, and thousands of dollars in debt. Not sure where I want to go from here, but I know that, if I'm ever going to get anywhere, I need to find a better job, or go back to school. Or would, if I could pay for continuing my education.

I'm glad we've got more jobs. I'm glad pay and benefits are increasing slightly. I'm just somewhat miserable that my own personal economy really frigging stinks.

[closeupready]

2. I'm no lawyer, but I believe reduction in pay rate is grounds for a claim of constructive discharge

meaning she'd be eligible for unemployment benefits if she filed.

[progree]

3. Full details from the Bureau of Labor Statistics

http://www.bls.gov/news.release/eci.nr0.htm

[Fred Sanders]

4. There goes another Republican and mass media talking point to say the economy is not booming.

Thanks, Obama!