January’s wage report from the US Department of Labor gave a ray of light to US workers. Ever since the 2009 Great Recession, the American workforce has seen a steady decline in hourly wages. In December, the US workforce saw a 3% increase in hourly earnings for the first time in several years. Locally, Miami County’s unemployment rate dipped to 6.1% in November which is the lowest it has been since June of 2008.
According to the US Department of Commerce , with more Americans working, there was an 8% increase in disposable income in November 2012. In turn, the demand for durable goods also increased as workers began to feel better about their situation. These numbers show what really drives our economy, the middle class. If Americans take it on the chin they pull back, mainly by necessity.
On a side note, although an increase in wages is a major plus, low wages has been one reason the Fed has kept interest rates low. A December article in USA Today shed some light on the Feds plans, “The Federal Reserve on Wednesday agreed to keep a key short-term rate near zero until the 7.7% unemployment rate is 6.5% or lower.” If you have an inkling of making any large purchase or re-financing an existing one, get it done soon, real soon.
HR Associates Personnel Service leads in Social Media in the Upper Miami Valley. Visit us on Facebook, Twitter, LinkedIn, Google + and YouTube. Hr Associates is a member of the Dayton Chapter of the Better Business Bureau and the Piqua Area Chamber of Commerce.
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