[Ed. – Obama said Trump must have a magic wand to promise wage growth. Apparently, he did.]
Nearly a decade after the end of the Great Recession, wage growth for American workers has finally broken through 3 percent, a symbolically significant milestone that has fueled optimism for workers but worry on Wall Street that higher labor costs could combine with trade-related cost increases — and cut into companies’ record-setting profits.
The October jobs report showed the economy added 250,000 jobs last month, blowing past the 190,000 that economists had predicted. The top line unemployment rate of 3.7 percent — unchanged from last month — was in line with expectations.
“This is a really strong report. It’s firing on all cylinders,” said Josh Wright, chief economist at iCIMS, a hiring software company.
For the month, worker pay rose by 5 cents to $27.30, a 3.1 percent increase on an annualized basis and the biggest jump in wages since April 2009.
“We’re finally seeing wage growth pick up for more workers over the last few months and it’s an upward trend I expect to see continue in the coming months if the economy remains on track,” said Andrew Chamberlain, chief economist at Glassdoor.