By this measure, wage growth is way stronger than you think

Though all eyes are on Europe at the moment, some important economic news will be coming out of Washington later this week.

The June jobs report will be out on Thursday and Wall Street is expecting payroll gains of 230,000, down from the 280,000 jobs added in May.

Last month, we also saw some solid wage growth, which we are expected to see again on Thursday — with Wall Street expecting wages to rise 0.2% over the prior month and 2.3% over last year, the same as in May.

And according to the Atlanta Fed’s Wage Growth Tracker, May actually saw a median wage increase of 3.3% year-over-year and is indicating an economy that could be stronger than some data indicate.

“Wage growth by this measure was essentially unchanged from April and 1 percentage point higher than the year-ago reading,” the Atlanta Fed said Monday.

“The current pace of nominal hourly wage growth is similar to that seen during the labour market recovery of 2003 — 04 and about a percentage point below the pace experienced during 2006 — 07, which was the peak of the last business cycle.”

So, still a lot to work through in markets between now and the June jobs report. But don’t forget about wage growth, which still shows signs of going strong.

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