Posted on 02/08/2023 11:50:24 AM PST by EBH
The new wage measure, often referred to “supercore” wages, pertains specifically to the services sector without housing, which includes for labor-intensive businesses like restaurants and salons.
The Fed has been concerned about how many non-housing businesses in the service sector are still struggling to fill open jobs and keep employees from taking other gigs with better pay and benefits.
Fed officials believe this dynamic has put too much pressure on wages and prices in those industries, which has kept inflation higher than the bank would like. The Fed seems likely to impose more economy-slowing rate hikes after the unemployment rate dropped to 3.4 percent
But the new gauge from the White House suggests the opposite, showing steep declines in the so-called “supercore” wage growth that the Fed believes is closely tied to the labor market.
Annual supercore wage growth has fallen from 8 percent to just over 5 percent in January, the White House’s Council of Economic Advisors (CEA) found. That’s a much more rapid drop in wage growth than for all private-sector employees, which have fallen from 5.9 percent last March to 4.4 in January.
“[Core non-housing services] inflation … has garnered considerable interest of late. Because non-housing services are more labor intensive than the other categories, some surmise that the tight labor market may be playing a meaningful role in this part of inflation,” CEA economists wrote in a blog post published Wednesday.
snip
“Concern about wage growth in core services [excluding] housing animates much of [the] Fed’s insistence on pushing for lower labor market tightness. But new measure of wages in that sector shows rapid reduction in nominal wage growth, which is additionally shown to predict future dis-inflation,” Arin Dube wrote online in response to White House.
(Excerpt) Read more at thehill.com ...
“The Fed has been concerned about how many non-housing businesses in the service sector are still struggling to fill open jobs and keep employees from taking other gigs with better pay and benefits.”
No need to do this. Once all the restaurants that use gas to cook the food go out of business because they cannot afford the ridiculous electric bills, they can reevaluate.
White House doing everything it can to convince the Fed a rate hike is not needed. LOL...
So now us service sector workers are ‘supercore’ wage and inflation .
So if you don’t like what the numbers are showing, change the way you produce them. Makes sense for this administration.
Exactly...they had to find a way to make this look ‘good.’ And lay blame at the same time.
amazing
It was you have to have a shot to work mantra by corps and gov that did them in. Thousands and thousands are working under the table and will never work for a place that wanted shots. Throw in the deaths from vax and covid and the numbers get clearer.
Oh, yeah, gotta make sure low-wage service workers don’t get pay increases that keep pace with inflation.
Thatta way to go, you globalist bankers!
I guess if they “dropped” it it means it wasn’t any good. I would drop the crap too.
It’s called rigging the game.
Nothing the Feds do is honest and forthright.
Yeah, but the word “supercore” workers...
The backbone of the economy and business in our country these days.
If you can’t give them more money, give them a new title, I guess.
5.5 million housing plan for the new illegals.
More BS!
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