Wages for low-skill workers are rising faster than they have in more than a decade, even faster than for their bosses, indicating that the demand for low-skill workers has greatly exceeded the supply of unemployed people.
According to the Federal Reserve Bank of Atlanta, pay for the bottom 25% of wage earners rose 4.5% from November 2018 to November 2019, higher than any point of Obama’s tenure, while wages for the top 25% rose 2.9%, also higher than any point since the recession.
“A strong labor market makes the bargaining power of lower-paid workers more like the labor market higher-wage workers experience during good times and bad,” Nick Bunker, economist with job search site Indeed.com, told The Wall Street Journal.
This is just another sign of the booming economy under the Trump administration, which is largely a result of the Tax Cuts and Jobs Act. The Trump administration has seen historically low unemployment, with more job openings than people opening for jobs, leaving the bargaining power on the side of the workers and driving up wages. Wage growth has surpassed 3%, even though it did not break 2.5% during the entirety of the Obama administration. The United States also added 2.6 million new jobs in the year following the tax cuts, which was a 25% increase from the previous year.
This is also contradictory to the narrative that the economic growth under the Trump administration has been primarily among the rich, this data indicates the opposite is true. The bottom income bracket is currently getting richer faster than it has at any point in the past decade.