Tomorrow is jobs day, and everyone will be interested in seeing if the unemployment rate drops, and whether we surpass 200K monthly new jobs.
And all that will be interesting.
But we’re also eager to see what’s going on with wages.
Our friend Ed Bradford (@fullcarry on Twitter) has been pointing out that average hourly earnings growth is, for the first time since the crisis ended, really breaking out (a phenomenon, not coincidentally, coinciding with the first real rise in interest rates). If this trend continues, it should assuage any concerns about deflation, and would vindicate Bernanke, who has been saying that the recent bout of disinflation is “transitory”. It would also represent great news for workers.
Anyway, with the jobs report, we’ll get an update to this chart, which is very exciting.