It’s been settled: wage growth is here.
In his latest monthly chart book, Deutsche Bank’s Torsten Sløk includes these six slides, which capture the coming growth in wages, which is the most important trend in the economy.
Since the financial crisis, wage growth and inflation have been subdued. But recent announcements from likes of Wal-Mart, Target, and TJ Maxx make clear that employers are starting to feel pressure from the workforce to raise wages or face tons of turnover.
Quits in the service industry have been on the rise, indicating strength in that segment of the labour market, and employers have responded in course.
These charts from Sløk make the case clear: America’s workers are about to get a raise.