Workers have been paid far less this year than previously believed, according to revised Bureau of Labor Statistics data released Wednesday.
Hourly compensation in non-agricultural businesses actually shrank by 0.9 percent in the second quarter, while the same statistic only grew by 1.3 percent in the third quarter. Labor Department data had previously shown that the wages grew by 2.3 percent in both quarters.
More complete information released by BLS also showed that productivity increased in the third quarter by more than stated in November’s preliminary report. The difference means that workers were not compensated for increased output per hour in the third quarter. Wednesday’s report stated that unit labor costs–the difference between productivity and hourly compensation–actually fell by 1 percent between July and September. It had previously been reported that the measure expanded by 0.3 percent.
In the long run, however, compensation growth appears to be broadly outpacing productivity gains. On a year-over-year measure, unit labor costs have grown in 13 out of the last 15 quarters. Nominal non-farm wages have grown on a year-over-year basis in 20 out of the last 22 quarters.
Wages aren’t quite keeping up with inflation in the same manner. Year-over-year measures of real non-farm wages have only increased in 13 out of the last 22 quarters.
