To EconoMeter panel: Lower jobless claims, higher wages?
Q: Do dropping jobless claims portend greater pressure to raise salaries?
Bob’s Answer: No.
Wage growth since 2009 has been very low and while the combination of the minimum-wage increases and the unemployment report will have a positive impact on wage growth, salary pressure will only truly increase when the economy picks up steam later in the second quarter. Given this is an election year, chances are good for a strong finish for 2016. The unemployment report is flawed in that it does not include those no longer looking for work.