Why Those Bigger Paychecks Don’t Feel as Good as You Thought They Would
Weekly earnings were rising at the fastest rate since the recession ended, but inflation-adjusted gains remain lackluster
.. Americans’ paychecks are rising at the fastest rate since the recession ended, but that’s done little to spark stronger spending at stores and restaurants.One explanation is that rising prices mean consumers don’t feel much richer than they did a year ago... Median usual weekly earnings for full-time workers rose 3.9% in the first quarter from a year earlier, the Labor Department said Tuesday.
.. But when adjusting for inflation, paychecks are growing more slowly than they were a year ago. When factoring in price changes, weekly earnings rose just 1.2% from a year earlier. That matches the fourth quarter of 2016 as the smallest advance since late 2014.