Tuesday, July 23, 2024

Wisconsin Number 1 for wage growth in the last year?

I had mentioned that things are going well in Wisconsin's job market. But I didn't know that we were having the best wage growth in America?
Gov. Tony Evers, together with the Wisconsin Department of Workforce Development (DWD), today announced Wisconsin ranked first in the nation for inflation-adjusted hourly earnings growth during February, March, and May 2024, and second in the nation during April, according to the preliminary data on private sector worker earnings released by the U.S. Bureau of Labor Statistics. The news comes as, last week, Gov. Evers and DWD announced preliminary data show Wisconsin hit its second consecutive monthly record for employment.

“Whether we’re looking at our nationally top-ranked wage growth, our record-high employment, or our strong workforce participation, it’s clear that Wisconsinites are working and working hard, and our economy continues to have positive momentum,” said Gov. Evers. “We’ve made it a priority to build a strong 21st-century workforce to support a strong 21st-century economy, and it’s making a difference for working families across our state. This accomplishment reflects not only the dedication and resilience of our employers and our workforce, but it also shows that together we’re building a more prosperous future for our state.”

For February, March, April, and May, year-over-year statewide earnings growth totaled 7.9 percent, 6.4 percent, 4.4 percent, and 6.2 percent, respectively, based on data from the U.S. Bureau of Labor Statistics’ Current Employment Statistics (CES) program and the Consumer Price Index. The CES survey covers hourly earnings by workers at private sector establishments.

Statewide, the average hourly earnings for May 2024 totaled $33.76. The Milwaukee-Waukesha-West Allis area led the state with average hourly earnings of $34.97, followed by Madison at $34.48 per hour and Eau Claire at $31.63 per hour.
I'm trying to find the data table, which seems to be derived from the Occupational Employment and Wage Statistics (OEWS), which get compiled by the Bureau of Labor Statistics. But the last thing they have published is from May 2023 for Wisconsin's metro areas and the state as a whole.

UW-Madison Professor Menzie Chinn has a similar story up on Econbrowser, but it's got a longer-range view, which shows that inflation-adjusted average wages had slipped after the end of the COVID pandemic, and only the rally in the last year has allowed real wages to exceed pre-COVID levels.

You wish the early 2020s hadn't seen the erosion that it did. But there's no doubt that as inflation has gotten under control in the last 12-18 months, Wisconsin's workers are seeing gains in their pay, and it seems like we should try to keep these good times going as best we can.

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