Many economic indicators point to a robust economy: GDP continues to grow, unemployment remains at historic lows and corporate profits are on an upward trajectory. However, these improvements have not translated to meaningful wage growth for American workers.
The PayScale Index tracks quarterly and annual trends in compensation. The latest Index for Q3 2018 shows that nominal wages fell by 0.1 percent and real wages held steady quarter over quarter (Q/Q). Due to inflation rising faster than wage growth, workers in Q3 2018 are earning 1.8 percent lower “real wages” than they did a year ago.
For information on how the PayScale Index relates to other economic indicators, please see our comparison of the PayScale Index and the Employment Cost Index as well as various measures of weekly hourly earnings.