Part 3 - How much (more) money we're making - November
In today's third story breaking down the employment report we'll explore real incomes. The average hourly wage for all Americans is currently $27.30 and with an average work week of 34.5 hours, the average income is now $48,976. That's an improvement of $107 from a month ago! Here are the highlights:
- +6 cents per hour (month over month)
- Real incomes have risen by $1,417 year over year
- +3.1% year over year increase in hourly earnings
We’re cooking with gas. This is exciting! Average hourly earnings have finally broken above 3% year over year for the first time in a generation. What’s more is that by the time you factor in bonuses and the benefit of the tax cuts, about $1800 per full-time employed person this year, the hourly increase is just the tip of the spear.
By the time that’s all added up together here’s what you get...
The average net take-home pay year over year has increased by approx. 7%
That remains the best in over 32 years and provides every reason to believe that we’ll be able to maintain our economic momentum with the best economic growth in a generation to finish up 2018. It’s hard to overstate how impressive this really is. Consumer spending accounts for about 70% of the overall US economy on average and we have the juice to continue to participate in significant ways.
For most that claim not to have seen the benefit of the tax cuts, it's because withholding adjustments haven't been appropriately made not because they're not set to receive the benefit. There’s an estimated 30 million people in this category. That'll all be reconciled by tax time next year but it's a reminder to look into making adjustments sooner if that's your situation.
Here’s the bottom line. We have one of the best job markets in the history of our country, in the best economy in a generation. For many demographics, it is the best ever. Additionally, wages are rising, bonuses are rising, and the economy appears to continue to be gaining momentum. This is what a good US economy looks like. It’s been 13 years since we had an economy, we could even compare this one to but there are vast differences between now and then. For a whole generation of adults, Millennials, they’re finally experiencing what our economy and country have to offer.
Until next month.
Photo by: SEBASTIAN D'SOUZA/AFP/Getty Images