FYI: The unemployment rate has fallen off a cliff since reaching double digits in October of 2010. It now sits at just 3.9%.
To put this in perspective, from 1970-1999, the unemployment rate never fell below 4%. Job openings in America now outstrip the total number of people actively seeking employment.
Economic textbooks would tell us when demand exceeds supply that prices (wages) should rise. And although the pace isn’t quite as high as some would like to see, this is happening:
Year-over-year wage growth bottomed in late-2012 and has been on a steady climb ever since. However, looking at the bigger picture, these numbers are still fairly subdued:
The logical follow-up question for investors is this: What impact does wage growth have on the stock market?
Regards,
Ted
http://awealthofcommonsense.com/2018/09/wage-growth-vs-the-stock-market/
