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Payroll Growth Declines While Average Hourly Wages Rise


Payroll growth is in the negative for the first time since 2010. It is estimated that the United States lost 33,000 jobs from the September Jobs Report. However, most people are not focused on that number due to the horrible weather and hurricanes. It is due to these hurricanes that the payroll growth fell. That is typical behavior for the payroll growth as shown by Hurricane Katrina in 2005.

Thankfully, chief economists are not as concerned with the drop in payroll growth due to the rise in average hourly earnings. These went up by 2.9% year-over-year, which is stronger growth than the United States has had since 2009. Severe weather may have impacted how the wages were measured, but the rise still shows that the United States’ labor markets are strong.

Hurricanes Irma and Harvey impact average hourly earnings because the people who are not accounted for in the September reports are usually individuals who are making less money. These people are paid hourly instead of monthly or semi-monthly, and the hurricanes affected their hours at work. In theory, this could have artificially inflated the average hourly earnings in the September report. This severe weather concludes that the September Jobs Report is a fairly hard report to read and analyze.

However, financial experts are hopeful for the outcomes shown in the September Jobs Reports. They assume that December rate hike average should be 90%, which is much higher than the 77% we saw in the United States this past week. This can lead to the rise of the United States dollar, which is a benefit for all Americans. Whether or not this happens is determinate on how well the reports read for October and November. With the severe storms that have hit around the world, it may be wise to not think too hard about the rise in average hourly earnings this month.

77% we saw in the United States this past week. This can lead to the rise of the United States dollar, which is a benefit for all Americans. Whether or not this happens is determinate on how well the reports read for October and November. With the severe storms that have hit around the world, it may be wise to not think too hard about the rise in average hourly earnings this month.

 

 


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Payroll Growth Declines While Average Hourly Wages Rise

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