WAGE WIPEOUT

With the unemployment rate at 4.2%, the labor market is relatively tight, yet wage and salary growth has been anemic at 3.1% Y-o-Y (less than inflation), compared with 3.6% a year ago. Rising employer healthcare costs, up a stunning 6.4% Y-o-Y on top of a staggering 6.1% a year ago, are likely why. Employers are spending so much on healthcare that it’s crowding out wage and salary increases.