Wages continuing to grow above the rate of inflation

It has been announced that the weekly earnings of the 102.8 million people currently in full-time employment across the USA is now 2.4% higher than it was at the same time last year. This growth represents an average wage of $71 per week.

This increase sees wages rise above the rate of inflation; wages have risen 0.5% over the past month alone.  This is in stark contrast to the UK, where weekly wages have been falling in order to keep pace with inflation.  On top of this, the top performing employees in America have seen their average wage rise by 4.4%, according to data released by the consulting firm Mercer.

Long-term growth in property prices has been directly linked to wage increases, so if wage growth is seen to be strong then this will impact on the prices people are willing to pay for property.  As the property market continues to show signs of sustained improvement, increased wages will simply serve to reinforce this recovery.  If wage growth continues to perform strongly then not only will property prices increase as people become more willing to pay higher prices for homes but also rents will increase as people are able to afford more expenditure each month. This leads to a strengthening of the economy, which feeds back in to increased wages and higher property prices.

Recent years have been tough in terms of wages, economic growth and the strength of the property market, but data released by several independent organizations in recent weeks has pointed to the US making strides to turn the corner away from the recession-hit economy.