Stock markets can only improve if sales increase more than the costs of the companies. Wage inflation describes the development of the major costs of companies. While retail sales remains sluggish, wages are rising more quickly.
Torsten Sløk of Deutsche Bank on the development of American wages.——————————————————————————————————————————-

wage inflation in the United States

The first chart shows that over the past year employer costs have risen significantly.

“Bonus Inflation” indicates pay rises of high-wage occupations

The second chart shows that the rise is driven partly by a significant increase in bonuses.

Wage Inflation United States by Sector, IT leads

The third chart shows that the uptrend in wages can been seen across all parts of the services sector. And the fourth chart shows that wages are rising faster for unionized workers.This data, the Employer Costs for Employee Compensation (ECEC), is created using the same raw data that goes into the Employment Cost Index (ECI). The difference between the ECI and the ECEC is that the ECI controls for changes in the industrial-occupational composition of jobs.

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