Washington, D.C. — Today, the U.S. Bureau of Labor Statistics released June’s employment situation, showing 224,000 jobs gained over the month, an unemployment rate of 3.7 percent, and wage growth of 3.1 percent over the year. In response, Center for American Progress economist Michael Madowitz released the following statement:
While unemployment remains low after 10 years of recovery, most workers haven’t felt the benefits of a tight labor market: Higher corporate profits have enriched those at the top, but wages for the working and middle class have mostly remained relatively flat.
Signaling that it will likely cut interest rates later this month, the Federal Reserve may act to bolster an economy that is still not creating rising wages, and in which the duration of unemployment remains historically high. But it’s incumbent on policymakers to take long overdue action on raising wages—particularly for low-income workers. What little wage growth has occurred recently is due in significant part to state- and city-level laws to raise local minimum wages—yet millions remain left behind. The economic recovery turned 10 last month, and the $7.25 federal minimum wage turns 10 this month. It should not take a decade for workers to receive a raise.
For more information or to speak with an expert, contact Allison Preiss at .gro.ssergorpnacirema@ssierpa