United States Real Earnings m/m

Real Earnings m/m show changes in actual earnings of the population in the given month compared to the previous one. The calculation includes wages, bonuses and other income minus mandatory payments (mainly taxes). Thus, real earnings reflect real purchasing power of the population.

Real earnings are adjusted for inflation and are calculated in relation to the base period as of 1982. In 1982, real earnings of the population were set to $84 per week. When calculating the indicator, the total average weekly income is adjusted for inflation taking into account CPI (Consumer Price Index).

Data on employees' earnings are calculated based on a survey of about 147,000 commercial enterprises and government institutions, which provide around 634,000 jobs across the United States.

The pure real earnings indicator without other parameters cannot characterize the general standard of living, since it is affected by the total family income, social payments, as well as the duration of employment and unemployment. Thus, the indicator calculation includes part-time and full-time jobs as well as the ratio of low-pay and high-pay jobs. However these figures are implicit, because an average figure is used.

Growth of real earnings generally leads to an increase in consumer spending (and therefore to inflationary growth), that is why it can have a positive effect on dollar quotes.