The May 2026 Personal Income report confirms a trend that has been developing for several months. While inflation and elevated borrowing costs continue to pressure household finances, the U.S. consumer remains remarkably resilient. Real personal consumption continues to expand, supported by steady wage growth, government transfers, and a willingness to draw down … [Read more...] about Personal Income – May 2026: Consumer Strength Continues Despite Income Pressures
Wages
Employment Report Preview: Cooling Labor, Negative Real Wages, and a System Under Pressure
A softer labor market may not offer relief if March CPI overwhelms wage growth and deepens pressure on consumption, GDP, and public finances. Labor Market Cooling, but the Main Issue Is Employment The unemployment rate is forecast to rise slightly to 4.5% from 4.4%, signaling a further, modest cooling of the labor market. That, however, is not the … [Read more...] about Employment Report Preview: Cooling Labor, Negative Real Wages, and a System Under Pressure
July 2025 BLS Employment Reports Real Wage Gains
July 2025 BLS Employment Report: Real Wage Gains Underpin U.S. Consumption Monthly and year-ending figures show broad, inflation-adjusted growth in average weekly earnings, reinforcing the spending power that supports the economy. Why Real Earnings Matter The jump in the headline unemployment rate from 4.1 % to 4.2 % is statistically negligible. What drives … [Read more...] about July 2025 BLS Employment Reports Real Wage Gains