Worker Wages Increased 1% in Q2, Bureau of Labor Statistics Reports
Summary from AllSides News Team
The United States Bureau of Labor Statistics reported Friday that wages for civilian workers increased 1% in the second quarter of 2023, a decline from the 1.2% growth in the first quarter of the year.
Details: Stagnating wage growth is being reported as good news for the Federal Reserve, which is working to decrease inflation by slowing the economy. Higher wages mean more spending, which drives up inflation. The main tool the Federal Reserve uses to slow the economy is interest rate hikes, which increase the cost of borrowing money. On Wednesday, the Federal Reserve announced another quarter-point hike, raising interest rates to their highest level since 2001. It is unclear how this new data will impact future decisions by the Federal Reserve, which hinted at potential additional hikes in the near future. Earlier this month, the Bureau of Labor Statistics reported that inflation rose 0.2% in June from May and 3% annually, marking 12 straight months of decreasing inflation.
How the Media Covered It: The new report received very little coverage from right-rated outlets. The New York Post (Lean Right bias) noted the Bureau of Labor’s statistics in an article Friday to refute statements made by President Biden praising the economy. In left- and center-rated coverage, the statistics were framed as bad news for workers but good news for the economy since they indicate the Fed’s efforts to cool inflation without a recession appear to be working.
Featured Coverage of this Story
From the CenterUS labor costs growth slows in second quarter
U.S. labor costs increased less than expected in the second quarter as wage growth cooled a bit, offering a boost to the Federal Reserve in the fight against inflation.
The Employment Cost Index, the broadest measure of labor costs, rose 1.0% last quarter after advancing 1.2% in the January-March period, the Labor Department said on Friday.
Economists polled by Reuters had forecast the ECI rising 1.1%. Labor costs increased 4.5% on a year-on-year basis after shooting up 4.8% in the first quarter.
The ECI is widely viewed by policymakers and...
From the RightPresident hails ‘Bidenomics’ in re-election pitch despite falling real income, poll pessimism
President Biden hailed his economic plan as a smashing success Wednesday as he laid out his case for a second term — despite American incomes falling due to high inflation and broad pessimism about the economy.
In Chicago, site of next summer’s Democratic National Convention, the 80-year-old president hailed steady job growth, even though government data indicate that those jobs are paying less on average than when he took office.
“Bidenomics is about the future. Bidenomics is just another way of saying: Restore the American Dream because it worked before,”...
From the LeftUS paychecks aren’t growing as quickly. That’s good for the Fed — but not for workers
US wage gains cooled in the second quarter, showing some easing of inflationary pressures, according to data from the Bureau of Labor Statistics released on Friday.
Wages and benefits paid to US workers rose 1% in the second quarter from the prior one, a slightly weaker pace than the 1.2% gain in the first three months of the year.
The Employment Cost Index, a comprehensive measure of employers’ compensation costs, advanced 4.5% in the second quarter from a year earlier, a slower pace than the 4.8% rise earlier in the...