Quote After years of wage stagnation, we are finally seeing rising wages. … This is our new American moment. There has never been a better time to start living the American Dream.

WAGES ARE RISING: American workers have more money in their bank accounts and their pockets as their wages rise.

Over the past year, real wage compensation has grown by 1.4 percent, well above inflation growth, according to a recent analysis by the Council of Economic Advisers (CEA).

CEA’s estimate represents over $1,000 more income per year for the average American household.

Benefits are also rising, with the average full-time, full-year employee seeing the value of their benefits grow by about $1,300 since 2004. In today’s hot-job market, employers are offering bonuses and enhanced benefits, such as more paid leave, to compete for workers.



A COMPLETE PICTURE: CEA’s analysis provides a more complete picture of the benefits that American workers are receiving as a result of President Donald J. Trump’s policies.

Wage growth estimates often miss meaningful aspects of the compensation workers receive.

According to CEA’s analysis, which accounts for additional factors such as increased benefits, headline wage measurements have significantly understated real wage growth.

Headline wage measurements often miss real wage growth, because they exaggerate inflation or exclude benefits like health insurance and tax credits. Headline measurements use the Consumer Price Index, which has been known to exaggerate inflation. These measurements also solely focus on cash earnings of American workers, excluding the value of fringe benefits like health insurance, taxes, sick leave, etc.

Part of the reason why official measures have understated wage growth is that the economy is strong and more people are joining the workforce. Those new to the workforce are less-experienced and thus less-compensated, which is driving down the National wage average. More-experienced, better-compensated Baby Boomers are retiring as well, depressing measured average wages.



TAX REFORM IS WORKING: President Trump’s historic tax cuts and reforms are working to increase incomes and benefits for Americans.