An article from Zero Hedge pointed out another strong part of the American economy under Donald Trump.
While The Fed may be getting nervous, we suspect the Trump administration will be smirking quietly as Labor Department data showed total U.S. employee compensation rose in the fourth quarter to match the biggest 12-month gain since 2008, as private-sector pay picked up.
The headline index rose 0.6% q/q (matching est.) after 0.7% gain in prior three months.
Wages and salaries rose 0.5% q/q following 0.7% gain.
Benefit costs increased 0.5% q/q after rising 0.8%.
Total compensation, which includes wages and benefits, rose 2.7% over past 12 months, the highest since 2008.
As Bloomberg details, private-sector wages and salaries rose from a year earlier by 2.8 percent, also matching the best gain of this expansion. Several industry groups registered increases of 3 percent or higher, led by transportation and material moving at 3.5 percent and service occupations at 3.3 percent, underscoring demand for labor.
This is what Employee Compensation is:
Employee compensation in the United States. Employer compensation in the United States refers to the cash compensation and benefits that an employee receives in exchange for the service they perform for their employer. … Benefits can also be divided into as company-paid and employee-paid.
This number is likely to only rise after the passing of Trump’s Tax Reform plan. The fact employees are seeing increased benefits and pay is exactly what will keep the economy stable and improve the conditions of working-class Americans.