American Wages Just Rose 3 Percent For First Time Since 2008

Worker wages and salaries rose 3.1 percent over the last year, marking the biggest gain in a decade according to a U.S. Labor Department report cited by CNBC today.

When taking employee benefits costs into account, the Bureau of Labor Statistics’ employment cost index rose 2.9 percent in the fourth quarter of 2018, which, like the aforementioned wages and salaries increase, also tied for the biggest gain since the third quarter of 2008—when the financial crisis was at its worst, according to the article.

The article reports that policymakers at the Federal Reserve watch the index for signs of wage inflation pressures. According to the article, the Federal Open Market Committee released a statement Wednesday saying that "market-based measures of inflation compensation have moved lower in recent months" though "survey-based measures of longer-term inflation expectations are little changed." The article indicates the committee voted not to increase the Federal Reserve’s benchmark interest rate at this time.