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America Get a Pay Raise – The Breakdown

Posted on February 6, 2018

The biggest piece of news in January’s strong jobs report concerns worker pay, which rose at a good clip after years of small increases.

According to the U.S. Bureau of Labor Statistics, average hourly earnings for all employees on private nonfarm payrolls rose by 9 cents in January, to $26.74. This follows an 11-cent gain in December.

Over the year, average hourly earnings have risen by 75 cents, or 2.9 percent.

This is good news – but how does it break down according to where we work?

Among occupational groups, compensation cost increases for private industry workers for the 12-month period ending in December 2017 ranged from 2.4 percent for management, professional, and related occupations to 3.1 percent for production, transportation, and material moving occupations.

Among industry supersectors, compensation cost increases for private industry workers for the 12-month period ending in December 2017 ranged from 2.0 percent for education and health services and financial activities to 3.6 percent for leisure and hospitality.

Compensation costs for state and local government workers increased 2.5 percent for the 12-month period ending in December 2017. In December 2016, the increase was 2.4 percent.

Wages and salaries increased 2.1 percent for the 12-month period ending in December 2017, the same as the December 2016 increase. Benefit costs increased 3.2 percent for the 12-month period ending in December 2017. The prior year’s increase was 3.1 percent.

Overall, private sector workers did better than government workers, and private sector workers in leisure and hospitality seemed to do the best overall.