Real Wages Decline 12 Times in the Last 14 Months – Mish Talk

March 12, 2022

Key Points

For all workers, real (inflation-adjusted) wages declined nearly 0.8 percent in February.
For all workers, real wages declined for the 12th time in 14 months.
For production and nonsupervisory workers, real wages declined nearly 0.6 percent in February.
For production and nonsupervisory workers, real wages declined for the 10th time in the last 14 months.

Consumer Price Index Month-Over-Month

CPI data from BLS chart by Mish

The CPI has been on a tear. It is rising faster than wages for over a year accountingfor the drop in real wages.

Consumer Price Index Year-Over-Year

CPI data from BLS chart by Mish

Year-over-year the CPI is up 7.9%.

Real Wages Year-Over-Year Percent Change

Real Wages Year-Over-Year data from BLS chart and calculations by Mish

Real Wage Key Points

Real year-over-year wages have fallen 11 times in the past year.
For all employees, real wages are down 2.58% in the past year.
For production and nonsupervisory workers, real wages are down 1.86% in the past year.

Hourly Earnings and Real Hourly Earnings Since 1964

Hourly Earnings and Real Hourly Earnings Since 1964 – Data BLS – Chart and Calculations by Mish

Key Hourly Earnings Points

In February of 1973 real hourly earnings for production and nonsupervisory workers were $9.38 per hour.
In February of 2022 real hourly earnings for production and nonsupervisory workers were $9.63 per hour.
In the last 49 years, real hourly wages have risen by a grand total of 25 cents per hour.