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Marketwatch brings good news for the USA: American workers are finally reaping the benefits of the lowest unemployment rate and best jobs market in decades: Wages and benefits are rising at the fastest pace in a decade. Firms have sought to fill openings by offering better benefits such as more vacation time or flexible hours. When push comes to shove, they are offering higher pay. While bigger paychecks are great for workers, the US Federal Reserve is watching closely to see if rising compensation is stoking inflation. The Federal Reserve could increase U.S. interest rates if it becomes a big worry, but so far inflation remains relatively mild.
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Wages and Benefits are Rising at the Fastest Pace in a Decade
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If condition persists, consult your physician.
(Score: 3, Insightful) by Anonymous Coward on Monday August 06 2018, @10:51AM (12 children)
I feel like I was reading the exact opposite articles last week, where the job market hadn't and wouldn't saturate because they weren't paying enough and their benefits packages were too weak to compete. Somehow you're telling me they've adjusted worldwide in a week's breadth? I think not.
(Score: 2) by The Mighty Buzzard on Monday August 06 2018, @11:29AM
First article you mention sounds like an opinion piece as opposed to a "this is what the numbers are doing right now" piece. Opinion pieces regarding the economy should be taken with an 18 wheeler worth of salt. Especially from someone who's not filthy rich.
My rights don't end where your fear begins.
(Score: 0, Offtopic) by khallow on Monday August 06 2018, @12:58PM (2 children)
(Score: 5, Informative) by Anonymous Coward on Monday August 06 2018, @05:23PM (1 child)
There is also a nuance you are missing. Benefits is the market value of the benefit, not the actual amount the employee gets or the company spends. Besides the fact that this means that benefit costs increase as the benefits themselves get more expensive, this means that they can cook the book on benefits based on said FMV. An example of the former is the health benefit, the cost increases approximately 2-5%. Therefore, the company can claim their benefit goes up by the same amount each year.
For an example of the latter, my company added a soft drink fountain and free coffee to our office this year. They get to count each and every drink as a "benefit," which they do by taking the whole FMV and dividing by the number of employees. So, say they give out 10400 16 oz. fountain drinks to 40 people a year. That would cost $2,600 @ 25 cents per drink. However, at the FMV of $1.30 a drink, they get to claim $13,520 as the benefit or $338 a person. Suffice it to say, the same goes for the vending machine discounts, tuition reimbursement, fitness centers, cafeterias, insurance, 401(k) matches and everything else they provide employees.
(Score: 1) by khallow on Tuesday August 07 2018, @12:54AM
Given that individual health insurance would also go up by similar amounts, that's not saying much. The value to employees goes up as the FMV goes up.
(Score: 5, Interesting) by DeathMonkey on Monday August 06 2018, @05:04PM (7 children)
That's because the study doesn't really say what they claim it is saying.
The sub headline: Cost of labor rose at a 2.8% yearly rate as firms boost benefits
There are many things that could increase the cost of labor that don't actually translate to workers getting better stuff.
some 70% of employment costs — rose a sturdy 0.5% in the second quarter, the government said Tuesday. Enjoy those crumbs (that won't cover inflation)
The big increase was in benefits: They jumped 0.9% to mark the largest advance in four years. Or, sabotaging the ACA lead to the cost of health insurance going up. Workers get the same benefits they did before they just cost more.
(Score: 2) by DeathMonkey on Monday August 06 2018, @05:08PM
Oops, mangled that first quote. 0.5% was the increase in wages.
(Score: 3, Interesting) by MichaelDavidCrawford on Monday August 06 2018, @05:27PM (4 children)
To be completely clear: the people who now get more benefits were _already_ paid well.
Part-Time Burger Flippers don't receive benefits; salaried full-time engineers do.
Yes I Have No Bananas. [gofundme.com]
(Score: 2) by DeathMonkey on Monday August 06 2018, @05:49PM (3 children)
And to add the anecdotal. I'm paying co-pays on some of my meds again. So my healthcare insurance is demonstrably worse than a couple years ago.
(Score: 1) by khallow on Tuesday August 07 2018, @12:59AM (2 children)
OTOH, it means you're consuming less in health care and thus, lowering costs for everyone else consuming health care.
(Score: 0) by Anonymous Coward on Monday August 13 2018, @10:41AM (1 child)
(Score: 1) by khallow on Friday August 17 2018, @12:19PM
What was "inadequate" or "improper" about such health care?
(Score: 2) by JoeMerchant on Monday August 06 2018, @10:11PM
F- that. 2.8% annual cost of labor increase. In the last 5 years I've experienced a 30%+ cost of housing increase, bigger than that in the cost of gasoline, and similar increases in cost of food. But, the Fed is keeping an eye on inflation, so that's good.
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