Good News! You're Likely to Get a Raise
This recovery thing seems to finally be picking up. The latest good news, coming from non-government organization BNA, shows that workers in the private sector overall will probably see higher annual wage increases in the coming months. These findings are based on the revised first quarter Wage Trend Indicator(WTI).
The rate of annual wage and salary growth for private sector workers in the coming months will likely be close to two percent, according to economist Kathryn Kobe, a consultant who maintains and helped develop the WTI database. "For the most part, the employment situation has stabilized and is getting a little stronger," she says.
Two-percent increases may not sound like much to you, but that's better than the 1.8 percent that wages grew last year, and up from a 1.3 percent increase in 2009. The slow but sure rise is a very good thing.
Analysts have come to these conclusions by combining and assessing the seven employment-oriented factors, which comprise the Wage Trend Indicator. There was positive movement in five of those seven factors this quarter. They include:
- average hourly earnings of production and non-supervisory workers
- the unemployment rate
- job losers as a share of the total labor force
- industrial production, measured by the Federal Reserve Board
- the share of employers planning to hire production and service workers in the coming months
The only negative factor was the proportion of employers reporting difficulty in filling professional and technical jobs. In other words, there just aren't enough qualified tech workers to fill all the positions open. Which is actually good news if your in the tech field and currently seeking employment.
The final WTI component -- the expected rate of inflation, compiled by the Federal Reserve Bank of Philadelphia -- was neutral. In other words, these experts don't expect that 2 percent wage increase to be counteracted by inflation.
These days, any positive news, no matter how small it may seem, is welcome. These latest findings may be a sign that the pressure is diminishing and confirmation that the economy is headed in the right direction.
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