By Casey Harper (The Center Square)
New jobs data shows that a significant number of Americans saw their incomes shrink last month, while prices continue to rise.
Morning Consult launches new economic data showing that the number of Americans reporting loss of wages or income rose from 11 to 11.7% in July.
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“The US job market remains strong, but the best days may now be in the rearview mirror,” said John Leer, chief economist at Morning Consult. “With the Fed aggressively raising rates to combat high inflation, companies are slowing hiring and expansion plans, releasing steam from a red-hot job market.
“Whether that slowdown is rapid and severe enough to plunge the economy into recession remains to be seen,” Leer added.
Poorer Americans have been hit hard.
As of the week ending July 23, 13.9% of adults from households earning less than $50,000 reported losing wages in the past week, an increase of 1.3 percentage points from a series recorded in early June. was low,” Morning Consult said. “Wage loss is also concentrated in certain sectors, including leisure [and] catering and construction.”
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The wage decline is ill-timed, as the most recent inflation data shows that prices are continuing to rise.
The most recent inflation data from the US Bureau of Labor Statistics showed a rise in consumer prices of 9.1%, ahead of expectations and a sign that price increases are not slowing down.
The US Bureau of Economic Analysis released last week its personal consumption expenditure, a key indicator of inflation, which also saw significant price increases, particularly for food and energy costs.
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“Food prices were up 11.2 percent and energy prices were up 43.5 percent,” the BEA said. “Excluding food and energy, the PCE price index rose 4.8 percent from a year ago.”
Morning Consult conducted 20,000 weekly interviews to collect the data.
Syndicated with permission from The Center Square.
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