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How positive jobs data bury bad news
by Helen Harjak on Jul 15, 2014 at 17:20
According to BLS, over the past 12 months to June 2014, average hourly earnings rose by 2%. The US CPI increased 2.3% over the year to May 2014.
Charles Gave, founding partner and chairman of research provider GavekalDragonomics, said the rise in the price of staple goods hit the poorest proportion of the population the hardest.
‘The broad picture in the US may be of low interest rates and rising real average incomes, but the poor have seen their real incomes slashed since 2008 and with scant subsequent improvement,’ he said.
It appears that many workers, especially those on minimum wage or on unstable variable income, are yet to benefit from the economic recovery.