Are wages keeping ahead of inflation? Yes, according to some new data from the government’s Bureau of Labor Statistics.
The BLS reports that compensation costs for civilian workers increased 2.4 percent for the 12-month period ending in March 2017. This is what employers shelled out to keep us on the payroll.
In March 2016, compensation costs increased 1.9 percent.
Wages and salaries, (which make up about 70 percent of compensation costs), increased 2.5 percent for the current 12-month period and increased 2.0 percent for the 12-month period ending in March 2016.
Benefit costs increased 2.2 percent for the 12-month period ending in March 2017.
In March 2016, the increase was 1.7 percent.
To put this in perspective, inflation averaged about 1.26% during 2016. That’s an official figure, based on a selected “basket” of things people spend money on.
So, American wages are staying ahead of inflation.