The employment to population ratio is a leading indicator for wage growth. Because when there is lack of demand for workers, wages for these workers will naturally go down.
When we chart the employment to population ratio against the annual change in hourly earnings, we can clearly see this correlation.
The blue line leads the red line.
When we chart the employment to population ratio against the annual change in hourly earnings, we can clearly see this correlation.
The blue line leads the red line.
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