[HN Gopher] 2022Q4 real compensation revised downward to -4.7% f...
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       2022Q4 real compensation revised downward to -4.7% from +0.7%
        
       Author : mitthrowaway2
       Score  : 14 points
       Date   : 2023-06-02 22:16 UTC (44 minutes ago)
        
 (HTM) web link (www.bls.gov)
 (TXT) w3m dump (www.bls.gov)
        
       | mitthrowaway2 wrote:
       | According to the BLS, the previously published data for Q4 2022
       | showed real nonfarm wages rising +0.7% annualized (wages growing
       | faster than inflation), but this has now been revised to -4.7%
       | annualized (wages shrinking vs inflation). In fact, the revised
       | figures show that wages decreased by 0.7% even in nominal terms,
       | whereas they previously estimated that wages had been growing
       | 4.9%.
       | 
       | Revised figures for 2023 Q1 show that nonfarm real hourly
       | compensation decreased -1.7%, whereas the previously published
       | figures showed -0.3%.
        
         | jeffbee wrote:
         | I guess that poses a serious problem for those who still claim
         | that wages are driving inflation.
        
           | toomuchtodo wrote:
           | Corporate profits down ~5% last quarter. 10 million job
           | openings at the moment. Lots of pain for capital ahead, not
           | so much for the labor market (structural demographics). Gotta
           | squeeze enterprises more, who have been juicing profits with
           | pricing power.
        
           | adra wrote:
           | I mean, it could be still true if you expect that only the
           | economy outlier super rich driving up the costs against those
           | that can barely scrape together enough for a meal.
           | 
           | An interesting observation would be to know the grocery cost
           | growth per area / supermarket chain to see if there's a wider
           | increase in prices between affluent and poor neighbourhoods.
        
           | berbec wrote:
           | "Facts" and "reality" have never been a serious, or any sort
           | of, problem for those folks. They believe in trickle-down and
           | the reason people are poor is because they go to StarBucks
           | too much.
        
             | jjtheblunt wrote:
             | Do you have terms mixed?
             | 
             | Trickle-down was a Republican thing, but these stats are
             | during a Democratic administration?
        
       | oh_sigh wrote:
       | Why is farm business broken out from nonfarm business?
        
         | berbec wrote:
         | Because many of the rules (minimum wage, age restrictions etc)
         | do not apply to farm businesses.
        
         | peteradio wrote:
         | Farm business relies either on family or very low wage
         | immigrant labor. They behave differently enough that it's worth
         | watching them separately.
        
       | SamoyedFurFluff wrote:
       | Serious question: if compensation is actually decreasing where
       | are people getting justification on rolling back child labor
       | laws? Now adults have to compete with children?? Isn't that just
       | going to make it worse???
        
         | jeremyjh wrote:
         | It will make things better for the people purchasing the
         | legislation.
        
           | berbec wrote:
           | Best investment out there: buy a politician.
        
         | tiedieconderoga wrote:
         | Worse for whom? Those laws are being passed to address a
         | perceived labor shortage.
         | 
         | Some employers and economists would tell you that it's good for
         | wages to decrease, because that will help to fight inflation.
         | 
         | It's all a matter of perspective.
        
       | [deleted]
        
       | falcolas wrote:
       | Cue economists claiming this is great, because it will lower the
       | rate of inflation, pinky promise.
        
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       (page generated 2023-06-02 23:00 UTC)