The U. S. economy has shown a rapid rate of growth recently and in August, wages reportedly have increased at their fastest rate of growth in the past nine years. The economy added 201,000 jobs and the unemployment rate remained at 3.9 percent which is near an 18-year low, the government reported Friday in its monthly jobs report.
The good news comes even after nearly a decade of economic growth which is the second longest stretch in U. S. history. The economy is expanding at a healthy pace which reportedly has been fueled by tax cuts, confident consumers, greater business investment in equipment and more government spending. The growth reached 4.2 percent at an annual rate in the April- June quarter, the fastest rate in four years.
Average hourly pay in August increased by 0.4 percent in August and increased reportedly 2.9 percent compared with a year earlier. That would be the fastest annual gain since 2009 when the Great Recession ended.
Acceleration in wage growth seems to be arriving, according to Gus Faucher, chief economist at PONC Financial Services. “It’s good news for workers’ paychecks, its good news for consumers an it’s good news for the overall economy.”