US wage growth hits 17-month high

By U.S. EconomyFOXBusiness

Will a second recession hit the US by 2020?

Nouriel Roubini, a professor at the New York University Stern School of Business, discusses the current state of the U.S. economy and why he expects a significant swell down in growth by 2020.

National wage growth is at the highest it’s been in nearly 17 months -- and, according to a new study released by Glassdoor, it’s not expected to slow down anytime soon.

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“We expect wages to continue to rise as demand remains for workers throughout a number of industries,” Glassdoor economist Daniel Zhao.

Wages grew 2.6 percent year-over-year from 2017 to $52,664, making it the fastest wage growth seen since April 2017.

Some industries are also seeing bigger boosts in pay than others. For instance, health care roles like pharmacy technician and emergency medical technician saw annual pay grow by 6.8 percent and 5.7 percent, which could indicate “big opportunities” in the field. That’s in large part because those types of jobs require human interaction, and are therefore difficult to automate, despite increased demand.

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Minimum wage hikes across 20 states also have helped to boost traditionally lower wage roles, like those of bank tellers (up 7.5 percent) and bartenders (up 6.6 percent). Cities in states that pushed for a higher minimum wage also saw bigger pay growth, with San Francisco leading the way at an increase of 3.9 percent.

Stunted wages have been a point of concern for the Federal Reserve as the economy strengthens and the unemployment declines, but during a recent press conference, Fed Chair Jerome Powell struck a note of optimism, saying that benefits like vacation time and paid sick leave should be used as a measure of wage growth.

“We look at a range of indicators for wages and I think the broader the better,” Powell said on Wednesday. “A perfect wage measure would also include benefits.”

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