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What Is Happening in This Unprecedented U.S. Labor Market? April 2023 Update

Labor shortages continue to harm the U.S. economy, adding to ongoing inflation, increasing the risks of an economic down, and exacerbating the federal government’s irrefutably unsustainable fiscal outlook. This Backgrounder examines the current U.S. labor market by diving deeper into the employment trends among different groups of workers with data through March 2023.
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Workers' Compensation: Growing Along with Productivity | The Heritage Foundation

Toggle open close Increasing living standards depends on increasing worker productivity. Competition causes firms to tie wages closely to employees’ productivity. Since 1973, the average private-sector employee’s productivity has increased by 81 percent, while their average compensation has increased by 78 percent. Some analysts have produced charts purporting to show that productivity has grown sharply while pay has remained nearly flat. These charts contain many methodological errors. The...
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