Business Economists Are Sending A Very Clear Warning That Wage Growth Is Happening

There has been a recent spike in the percentage of industry economists who said that wages are “rising”, according to a new survey from the National Association for Business Economics (NABE).

In their 2014 Q2 report, NABE wrote that in the past three months, “43% of respondents’ firms raised wages — more than double the share that reported this in July of 2013”.

Additionally, this is a significant increase from January 2014 — which had 23% of respondents reporting rising wages.

This is the third consecutive NABE survey in which respondents reported “rising wages at their firms increased by at least seven percentage points”.

This is also the first survey since October 2012 “in which no respondents reported falling wages at their firms”.

All of this connects to the larger conversation on wage growth.

Janet Yellen recently noted that a “significant slack” remains in labour markets, indicated by “continued slow pace of growth in most measures of hourly compensation”.

However, there have been numerous indications that wage growth might be coming. Additionally, this chart indicates a rising demand for labour — which has historically translated into wage gains.

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