Wednesday, May 11, 2005

Less Bang for Your Buck

Inflation is rising faster than wages in the US. That has real wages -- the buying power of your paycheck -- falling at the fastest rate in 14 years.

The Financial Times reports real wages falling by .9% -- the worst showing since the 1.1% decline at the start of 1991. There are still 22,000 fewer jobs than when the recession started in March, 2001. Analysts say the slow replacement of jobs has made it harder for workers to ask for more pay. (At the same point after the early 1990s recession, job growth was up 4.7%) (Financial Times)

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