Productivity up, some salaries down
As a result, wages and salaries now make up the lowest share of the nation’s gross domestic product since the government began recording the data in 1947, while corporate profits have climbed to their highest share since the 1960’s, according to government data. Does that mean companies are not spreading the wealth?
Until the last year, slow growing wages were offset by benefits, such as health insurance. Since last summer, however, the value of workers’ benefits has also failed to keep pace with inflation, according to the government.
At the top income levels, workers continue to receive raises that outpace inflation, and the gains have been large enough to keep average income and consumer spending rising.
Engineers, on the other hand, continue to remain steady on the salary front.
For more information on engineering salaries, take a look at the salary survey in the October issue of InTech.
Talk to me.