Wacko Wages

Average hourly earnings of private non-farm employees rose 2.9% Y-o-Y in January. This roiled markets; it was the largest gain since 5/09. But, the gain was exclusive to supervisory workers whose Y-o-Y gain was 3.9%! This fluke outcome occurred because the bomb cyclone prevented low-paid hourly workers from working, reducing their hours worked and pushing up average wages. A wild market over-reaction to a soon to be reversed weather-related distortion.