Real earnings fell for a fifth straight month as wages fail to keep up with soaring gasoline prices and other costs. Inflation-adjusted earnings for all private workers dropped 0.5% in March, the worst monthly drop since July 2008, according to Labor Department data. Nominal wages were flat while consumer prices climbed more than 0.5%for a second straight month.
Year over year, inflation-adjusted weekly pay sank 0.4%. That’s the first drop in a year and down from a 2.2% gain in October.
Since October, real weekly wages have dropped at a 3.8% annual rate — matching the decline set in July 2008, when oil prices peaked above $147 a barrel.
Friday, April 15, 2011
This combined with an inflation rate running at 6+ percent spells big trouble.
Posted by traderrob at 4:54 AM