May 18 — The pace of annual wage increases is expected to hold steady or improve only slightly later this year, according to the latest Wage Trend Indicator released May 18.
Bloomberg BNA's index dropped to 99.99 in the second quarter from 100.07 in the first quarter. The WTI's first decline in two years suggests a temporary pause in the further acceleration of wage growth.
Kathryn Kobe, a consultant who maintains and helped develop Bloomberg BNA's WTI database, said she expects the rate of wage growth for most U.S. workers to hold steady or improve only slightly from the underlying trend of 2.5 percent in the next six to nine months.
The WTI forecasts the direction of wage trends but not the amount of acceleration or slowdown.
Reflecting recent economic conditions, three of the WTI's seven components contributed to the index's second-quarter decline, while three had a positive impact and one had a neutral effect.
Helping drag down the index were the percentage of employers planning to hire production and service workers in the coming months, as shown in Bloomberg BNA's quarterly employment survey; job losers as a share of the labor force, reported by the DOL; and industrial production, measured by the Federal Reserve Board.
Acting to boost the WTI were the unemployment rate and average hourly earnings of production and nonsupervisory workers, both from the DOL, and economic forecasters' expectations for the rate of inflation, compiled by the Federal Reserve Bank of Philadelphia.
The neutral factor was the proportion of employers reporting difficulty in filling professional and technical jobs, taken from Bloomberg BNA's employment survey.
The revised second-quarter index will be released on June 15.
For more information, see Compensation and Benefits Library’s Bloomberg BNA's Wage Trend Indicator chapter.
To contact the reporter on this story: Larry Swisher in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Susan J. McGolrick at email@example.com
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)