Smallest recorded quarterly increase of U.S. worker pay

Despite an improving labor market, U.S. worker pay rose at the slowest pace on record in the second quarter.

Since records of the Employment Cost Index (ECI) began being kept by the Labor Department in 1982, never have wages increased by a number as low as 0.2 percent.

Wages have grew by 0.7 percent in the previous quarter and 2 percent overall this year.

This is below the 2.7 percent from 2014.

The low U.S. wages will not help the inflation rate, which Federal Reserve Chair Janet Yellen is hoping will reach her target of 2 percent this year. Currently, inflation is sitting around 0.1 percent.

This setback may force the Fed to delay an increase in interest rates for the first time since 2006.

[Bloomberg][Business Insider]


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