Wage trends and the economy

Slides:



Advertisements
Similar presentations
Unit 3 Macroeconomics.
Advertisements

Maine Workforce Conditions & Outlook Presented to the Joint Standing Committee on Labor, Commerce, Research, and Economic Development January 29, 2013.
LOUISVILLE.EDU The State of the Housing Market in the Greater Louisville Area Louisville Housing Market By: Jose M. Fernandez Assistant Professor.
Barry Naisbitt Economic Analysis Trends in the Economy 30 th September 2010, London United Kingdom.
Economic Outlook William Strauss Senior Economist and Economic Advisor Federal Reserve Bank of Chicago Multi-Chamber Economic Outlook Luncheon Westmont,
Waging Inequality in America By Lawrence Mishel. The Middle Class Income Squeeze: Relentless, Persistent, and Accelerating.
Unit 6 Macroeconomics: GDP and Economic Challenges Chapters 13.2 Economics Mr. Biggs.
Economic Outlook William Strauss Senior Economist and Economic Advisor Federal Reserve Bank of Chicago Calumet Area Industrial Commission Chicago, IL April.
Economic Outlook William Strauss Senior Economist and Economic Advisor Federal Reserve Bank of Chicago Saint Xavier University Graham School of Management.
Microeconomics and Macroeconomics FCS 3450 Spring 2015 Unit 4.
Long-run economic growth The process by which rising productivity increases the average standard of living measured by real GDP per capita The Growth.
 The business cycle refers to the natural pattern of upturns (expansions, recoveries) & downturns (depressions, recessions) in the macroeconomy.
Macroeconomics: Economic growth and fluctuations Chapter 1.
1 of 40 WHAT YOU WILL LEARN IN THIS CHAPTER >> Krugman/Wells ©2009  Worth Publishers Macroeconomics: The Big Picture.
Macroeconomics unit What you should know by now. You should be able to : Define the following: Gross Domestic Product (GDP) & the 4 components Unemployment.
State of the Cities Denver Business Journal – Mayors’ Economic Forecast Professor Martin Shields CSU Regional Economics Institute.
Chapter 3 Assessing Economic Conditions. Learning Objectives  Identify the macroeconomic factors that affect business performance.  Explain how market.
18 Introduction to Macroeconomics
Regional economic distinctions are essential in better understanding New York’s economic challenges.
Future Financial Forecast An update on the big economic picture for credit, interest rates and inflation. Paul Cahill Chief Executive Officer.
 Agricultural  Service  Industrial  Information.
Measures associated with Real GDP. Real GDP trend: Long-term movement in Real GDP data. Several techniques.
Economic Outlook William Strauss Senior Economist and Economic Advisor Federal Reserve Bank of Chicago Spring Manufacturers Institute Orlando, FL April.
Relationship Between Businesses & The Economic Environment
To Accompany “Economics: Private and Public Choice 13th ed.” James Gwartney, Richard Stroup, Russell Sobel, & David Macpherson Slides authored and animated.
© 2013 Pearson. Jobs and Unemployment 22 CHECKPOINTS.
Economics for your Classroom from Ed Dolan’s Econ Blog US Private Sector Jobs Grow at Fastest Pace since Dot.Com Boom Feb 7, 2015 Ed Dolan’s Econ Blog.
Today’s Economic Situation: The Great Recession, The Recovery, Where We (May Be) Going? Principles of Macroeconomics 7/20/12.
What is a business cycle? How do we measure employment, unemployment, and how it changes over the business cycle The Meaning of inflation/deflation Why.
Economic Outlook William Strauss Senior Economist and Economic Advisor Federal Reserve Bank of Chicago Chicago Association of Spring Manufacturers Rosemont,
2009 Economic Forecast Update & Three -Year Outlook.
DIAGNOSING THE HEALTH OF OUR NATION’S ECONOMIC SYSTEM.
Economics: Chapter 13 Measuring the Economy’s Performance.
Essential Standard 1.00 Understand the role of business in the global economy. 1.
Dallas Small Business Economy Strengthening the Economy by Strengthening Microbusiness: A North Texas Forum January 31, 2012.
Dougie Adams Oxford Economics.
The Economic Development of the Global Main Economies Which Countries will be the Trend Setters?
ECONOMIC OUTLOOK: SHIFTING TO A HIGHER GEAR? Dr. Mike Walden Reynolds Distinguished Professor North Carolina State University 1.
Economic Outlook Douglas, AZ. Cochise College Center for Economic Research  Lower levels of production  Job losses/rising unemployment  Less income.
Economic Outlook for 2011 and 2012 William Strauss Senior Economist and Economic Advisor Federal Reserve Bank of Chicago Electronics Representatives Association.
Economic Conditions Change
Copyright © 2003 by South-Western/Thomson Learning. All rights reserved. CHAPTER 1 Introduction and Overview.
Economic and Social Update November 2007 William E. Wallace, Lead Economist World Bank, Indonesia November 2007.
 Bond  Budget deficit  Budget surplus  Business cycle  Capital project  Deflation  Depression  Gross domestic product  Retail sales  stock 
Section 4.2 Understanding the Economy.  The goals of an economy  The various measurements used to analyze an economy  The four phases of the business.
Understanding Business Cycles. Digital Safari Institute GreenBizz Project Stages of a Business Cycle Expansion Phase Expansion Phase – Boom – Peak Contraction.
December 3, The State of The Economy In this presentation National forecasts are produced by Global Insight, Inc. State and Metropolitan forecasts.
Economics The Business Cycle Unit 3, Lesson 2. What is the Business Cycle? The business cycle is a period of economic expansion followed by a period of.
A. A general rise in prices. 1. When prices rise, a person’s ability to buy goods and services goes down, which decreases purchasing power.
Long-Run Economic Growth Potential Real GDP Potential GDP Actual GDP.
The Housing Bubble Fact Sheet, ISSUE BRIEF July 2005 Dean Baker.
Illinois Monthly Employment: Comparison with Rest of the Midwest and the US Presentation by the Illinois Economic Observatory IEO Report
GDP and Economic Challenges
How do we measure economic performance?
U.S. Economic Performance
Loanable Funds Problems
Understand the role of business in the global economy.
Measuring Economic Activity
U.S. Economic Performance
The Economy and Iowa Credit Unions
A joint survey effort between Duke University and CFO Magazine
Macroeconomic 2.3.
វិទ្យាស្ថានខ្មែរជំនាន់ថ្មី Institute of New Khmer
2-2 Economic Conditions Change
Southern Nevada Compensation and Benefits Association May 14, 2008
The Wisconsin Economy:
Measuring the Economy’s Performance
Economics The Business Cycle Unit 3, Lesson 2.
GDP and the Business Cycle
Economic Update June 2017 Derek Harvey
Presentation transcript:

Wage trends and the economy

On average, wages grew by 3% in January over the previous month.

However, the overall wage growth trend is far below where it should be at this stage of the economic recovery. Month-to-month percentage changes have not yet matched the rates seen just before the recession began in 2008.

At the same time, employees’ share of corporate income, which plummeted during the last recession, has not recovered, a notable contrast with its rebound during earlier recoveries. Source: Economic Policy Institute, https://www.epi.org/nominal-wage-tracker/#chart-unemployment-rate

What does this suggest about the purchasing power of earnings? Since the mid-1970’s wage growth has lagged inflation growth during most years. The late 1990’s- wage gains moved ahead of prices. What does this suggest about the purchasing power of earnings? Source: Wall Street Journal; www.wsj.com