HKS Affiliated Authors


July 30, 2021, Opinion: "Over the last three months nominal compensation for all civilian workers rose at a 2.8 percent annual rate—leaving it at its pre-pandemic trend according to newly released Employment Cost Index (ECI) data from the Bureau of Labor Statistics (BLS). This is notable because the very high unemployment rate over the last year would have been expected to exert downward pressure on nominal compensation, as it did during the financial crisis. Instead, the rapid pace of compensation growth is consistent with other indicators, especially job openings and quits, which suggest the labor market is considerably tighter than it would seem given the high unemployment rate and low labor force participation rate."

HKS Author - Jason Furman and Willie Powell