In the June ’17 Employment Report, economist Bruce Steinberg takes a look at the Phillips Curve:
“Staffing and HR professionals should familiarize themselves with the Phillips Curve, which looks at the inverse relationship between unemployment and wage inflation. In a nutshell, low unemployment means high wage growth according to Phillips.”
The typically inverse relationship between unemployment and wage growth seems not to be working as of lately. On a macro level, unemployment has lowered, but wages have not grown in response. However, the Phillips Curve trend does still hold true on a micro level for select states with low unemployment and rising wages.
The monthly report also examines employment trends across all sectors. Share these stats with your team to inform your strategic planning.