Under Trump, American Workers’ Wages Increasing Faster Than Their Bosses’
Unemployment rates continue to remain low as economy holds ground
Working-class Americans are seeing their wages increase faster than their bosses' under President Donald Trump's booming economy as unemployment rates continue to remain low, according to The Wall Street Journal.
The increase in wages signal that the labor market is tightening, and in return, low wage employees are being given leverage for raises.
Due to a short supply of workers coupled with employers headhunting potential employees, many at the bottom are being allowed to climb up the pay scale, the report adds.
American workers on the bottom pay scale saw pay rise 4.5% in November from 2018, while wages for the top 25% of earners rose 2.9%, according to the WSJ, which cited data from the Federal Reserve Bank of Atlanta.
Since 2018, wages for low-skilled workers soared, the Atlanta Fed found.
Big corporations are also feeling the effect.
President of a Texas-based restaurant, Mooyah Burgers, Fries & Shakes, Tony Darden, commented on the change:
“The effective labor pool is smaller than what it has been in the past," he said.
“As you look to bring on folks, ultimately, higher wages are used to attract them.”
While Darden's company competes with other restaurants, the company still increased wages by 8% in 2019, with the majority of that flowing to entry-level workers.
VIDEO: Biden Says He’d Sacrifice Hundreds of Thousands of Jobs for “Greener Economy”— Neon Nettle (@NeonNettle) December 20, 2019
READ MORE: https://t.co/fFK6iskmjP
Americans are also feeling the effects.
According to a Dec, 20 CNN poll, nearly 76% believed that the economy is either “very or somewhat good,” which is the highest percentage in almost 20 years - while 80% said that the economy was doing well.
The poll also reveals an improvement from Trump’s first few days in office, when only half of the population viewed the economy as a net positive.
In October, Neon Nettle reported that unemployment figures dropped to the lowest levels since 1969, according to new US employment data.
The economy created 136,000 American jobs in September, with the unemployment rate falling to just 3.5 percent.
According to Econoday, economists were expecting the number of new jobs to be between 120,000 and 179,000, with the consensus number at 145,000.
Unemployment was better than expected, however, after it was predicted to remain unchanged at last month’s 3.7 percent.