Recently, insurance company Aetna voluntarily upped its minimum wage to $16 per hour, giving roughly 6,000 of its lowest-paid employees an average raise of 11 percent. Next year, the company also plans to offer lower-cost benefits to some workers. What’s behind the wage hike? Economics correspondent Paul Solman talks to Aetna’s CEO about the investment. Continue reading
There was a bright spot in Good Friday’s disappointing jobs report that revealed the number of jobs added fell well below expectations: Wages, stuck for so long, are finally starting to go up. The Wall Street Journal’s Eric Morath joins Hari Sreenivasan from Washington to discuss. Continue reading
At its March policy meeting, the Federal Open Market Committee refused to lay out a time table for raising interest rates, with Janet Yellen saying that a June rate hike is possible but not definitive. The Fed’s economic forecasts, however, painted a more sluggish view of an economy that could afford to see more inflation and less unemployment. Continue reading
For months, the thorn in the side of otherwise sunny jobs reports has been sluggish wage growth. As unemployment falls, wages are supposed to rise. Those expectations will likely play a role in the Fed’s policy deliberations this week. But in today’s Making Sen$e column, economist John Komlos argues that there’s still too much slack in the labor market for much growth. Continue reading
Despite harsh winter weather, the economy added 295,000 jobs in February and the unemployment rate fell to its lowest since mid-2008. Those are signs of a recovering labor market that the Federal Reserve might use to justify an interest rate increase sooner rather than later. Wages, however, remain sluggish, reinforcing doves’ calls for the Fed to hold off. Continue reading
In the long view of history, technological advancement unleashed by the Industrial Revolution has come to be seen as a net positive for economic development and everyone’s well-being, even those workers who initially lost their jobs. There’s reason to wonder, however, if this “second machine age” may be different.
WASHINGTON — President Barack Obama’s top economists say that even as the U.S. has managed to kick start a lasting and growing recovery, modest wage gains are far from making up for decades of paycheck stagnation for middle-class workers.
The recovering U.S. economy has made its strongest showing yet. Employers created a million jobs since November — the best three-month average in 17 years. And January also boasted the biggest wage rise in six years. But not all sectors saw the same level of growth. To discuss the data, Jeffrey Brown speaks with Diane Swonk of Mesirow Financial. Continue reading
Even opponents of open immigration often support temporary guest workers entering the U.S. on the H1-B visa program. But do immigrants skilled in science and technology undercut wages for U.S. workers? Quite the contrary, according to a new paper from the National Bureau of Economic Research. Continue reading
According to Friday’s jobs report, the unemployment rate dropped from 6.2 percent to 6.1 percent. However, the number of Americans dropping out of the workforce rose. Sudeep Reddy, an economics editor at the Wall Street Journal joins Hari Sreenivasan from Washington to talk about the long-term effects these exits may have on the nation’s economy. Continue reading