The impossible just happened: American wages are rising

This might be the best economic news Americans have had in a good long while.

New claims for unemployment benefits continued to plummet, tumbling to their lowest level since 2000.

US_initial_claims_for_unemployment_benefits_US_initial_claims_for_unemployment_benefits,_in_thousands__chartbuilder

 

And what’s more, there are even signs of life in nominal wages, which were up 2.6% in the first quarter, year-on-year.

US_wage_and_salaries,_year-on-year_change_US_wage_and_salaries,_year-on-year_change_chartbuilder

This is precisely why we told you to ignore the weak first-quarter GDP data produced yesterday. It’s old news. And the economy is showing signs of a strong snapback from its weather-induced first-quarter lull.

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