It’s only one data point, but…

Employers are not only hiring more, but they are paying more, too.  The
average hourly earnings for workers rose 4 percent in March compared
with those a year earlier, to $17.22 an hour.  The gains in weekly
earnings were even stronger, up 4.4 percent, to $583.67.

Here is the story.  I believe that the much-heralded "real wage stagnation" consists of three major factors: a) potential real wage increases being absorbed by rising health care premiums in the broader employment package, b) unmeasured improvements in the quality of economic life, the internet being one example, and c) an unusually long lag between rising productivity and real wage gains.  I am increasingly of the belief that the third factor no longer operates.


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