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Economist says wage growth down to real estate market

11th Apr, 2013back

390 PayScale lead economist Katie Bardaro believes that the three-year high wage growth in South Florida is largely thanks to the improvement of the state's local economy, and more specifically to the improvement in the real estate market.


The PayScale Index tracks the changes and trends in the wages of workers across the US, looking quarterly at 19 job categories and 15 different industries in the 20 largest metropolitan areas for comparative purposes; however, the PayScale Index does not include jobs in the public sector, as these wages are controlled by policy as opposed to economical factors.


Despite wage growth reportedly having dropped across America by 0.1% in the first quarter of 2013 compared to the previous quarter, wage growth in South Florida has, in fact, reached a new high. With a recorded rise of 3.8% compared with figures from last year and 0.9% from the previous quarter, this is the highest increase seen in the state for three years, according to the PayScale Index.


Bardaro believes that the wage increase seen in South Florida is closely correlated with the activity of the overall economy; for example; the finance and insurance industry, and everything under this umbrella such as accounting firms, venture capitalists and insurance agencies, has undergone improvement in the first quarter after being hard hit during the recession. Additionally, industries such as hospitality, transportation and finance have been experiencing a promising upswing. Bardaro believes, however, that it is the real estate industry that has contributed to the wage increase more than any other.


Seemingly, revelations about stabilizing industries has created a new-found public confidence in the economy; in turn, this is thought to be encouraging public desire to invest in real estate.