“Wages are rising at the fastest pace in decades.”
Wages rose 3.1 percent from December 2017 to December 2018, according to the Labor Department’s Employment Cost Index for civilian workers, a widely watched measure of pay that does not take inflation into account. That is the biggest increase — not adjusted for inflation — since the year that ended in December 2008.
But adjusted for inflation, wages for all workers grew 1.3 percent from December 2017 to December 2018, making the increase only the largest since August 2016, according to the Labor Department.
It’s worth noting that although real wage gains were higher in 2015 and 2016, that was a period of almost no inflation. So he can claim some credit for decent real wage growth now with inflation back at about 2 percent.
The Economic Policy Institute, a left-leaning think tank, says that nominal wage growth has been below a 3.5 percent target during the recovery. But the White House argued that traditional economic measures do not full capture increases in compensation, such as bonuses, and so real wages have actually increased even more than shown in the economic data.