(Click to enlarge)ZeroHedge, the dissident financial webzine in my opinion worth more than the whole of the business MSM put together, has revisited the statistical survey which in March caused me to post ZEROHEDGE Again Demonstrates Immigration Hurting Most Americans – Without Breaking TabooThis time the updated story is entitled The Reason Why There Is No Wage Growth For 83% Of US Workers
The most confounding aspect of the economy, and the one metric that has flashed a red light on Janet Yellen's "labor market dashboard" for years, is that wage growth has been completely non-existent, and roughly at half the Fed's targeted level of 3.5-4.0%.What's worse, and what the Fed may not even realize is that while Yellen is looking at the average wage growth for the entire US population which has been flat as a pancake for the past 6 years the wage reality for the vast majority of the US working population, or the 98 million non-supervisory workers which comprise 83% of total US private payrolls, is that their wages are not only not rising, or even flat, but for the past year have been declining at a rapid pace after hitting 2.5% in early 2014… in inflation-adjusted terms there is no wage growth for more than 4 out of every 5 workers.ZeroHedge does not explain why this is happening but the reason is quite obvious: heavy immigration impacts non-managerial job markets far more than managerial. As Ed Rubenstein has frequently documented, most recently in National Data: American Worker Finally Catch A (Brief) Break—But New Immigration Surge Continues
...a conspicuous weak spot in this economy: wage growth. Wages rose a scanty 0.1% in April. By this time in the recovery cycle gains of 3.0% per year are the norm. The influx of low wage foreign-born workers is undoubtedly a factor—albeit unacknowledged by the Main Stream Media—in keeping wages low.The recent acceleration in immigration accounts for the deterioration since 2014 pointed out by ZeroHedge.ZeroHedge is a strange outfit. It posts far too much and of too high a quality to be an amateur effort. I used to think Left Libertarian money was the reason immigration seems to be taboo (as in the Sierra Club case), but the site has come out ferociously against TPP as in A Multinational Trojan Horse: The Trans-Pacific Partnership 05/09/2015 and even more amazingly just posted a race realist piece The Faces Of Baltimore You Won't See In The News 05/12/2015.So maybe there is hope.
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