Figure A
Nominal wage growth moves in line with lagged inflation: Three-year moving average of hourly compensation and PCE inflation, 1948–2019
| Year | Compensation per hour | y = 0.9865x – 0.0158 |
|---|---|---|
| 1951 | 4.92% | 2.41% |
| 1952 | 5.93% | 3.35% |
| 1953 | 6.37% | 3.39% |
| 1954 | 4.98% | 1.40% |
| 1955 | 4.38% | 0.85% |
| 1956 | 4.31% | 1.08% |
| 1957 | 4.96% | 1.81% |
| 1958 | 4.87% | 2.46% |
| 1959 | 4.45% | 2.30% |
| 1960 | 3.94% | 1.83% |
| 1961 | 3.63% | 1.39% |
| 1962 | 3.39% | 1.28% |
| 1963 | 3.35% | 1.13% |
| 1964 | 3.99% | 1.27% |
| 1965 | 4.04% | 1.36% |
| 1966 | 4.49% | 1.81% |
| 1967 | 4.68% | 2.16% |
| 1968 | 5.98% | 2.98% |
| 1969 | 6.64% | 3.64% |
| 1970 | 7.53% | 4.36% |
| 1971 | 7.16% | 4.48% |
| 1972 | 6.95% | 4.11% |
| 1973 | 6.38% | 4.35% |
| 1974 | 7.12% | 6.40% |
| 1975 | 7.87% | 8.04% |
| 1976 | 8.19% | 8.08% |
| 1977 | 7.55% | 6.78% |
| 1978 | 7.33% | 6.32% |
| 1979 | 7.79% | 7.45% |
| 1980 | 8.90% | 8.87% |
| 1981 | 9.40% | 9.54% |
| 1982 | 9.03% | 8.43% |
| 1983 | 7.01% | 6.26% |
| 1984 | 5.54% | 4.53% |
| 1985 | 4.82% | 3.84% |
| 1986 | 5.05% | 3.15% |
| 1987 | 4.87% | 2.92% |
| 1988 | 4.84% | 3.06% |
| 1989 | 4.22% | 3.79% |
| 1990 | 4.55% | 4.22% |
| 1991 | 4.40% | 4.03% |
| 1992 | 5.00% | 3.47% |
| 1993 | 3.80% | 2.83% |
| 1994 | 2.92% | 2.41% |
| 1995 | 2.28% | 2.23% |
| 1996 | 3.21% | 2.11% |
| 1997 | 3.79% | 1.99% |
| 1998 | 4.53% | 1.56% |
| 1999 | 4.51% | 1.34% |
| 2000 | 5.36% | 1.59% |
| 2001 | 4.93% | 1.97% |
| 2002 | 4.04% | 1.91% |
| 2003 | 2.97% | 1.73% |
| 2004 | 3.11% | 1.92% |
| 2005 | 3.68% | 2.43% |
| 2006 | 4.05% | 2.69% |
| 2007 | 4.22% | 2.70% |
| 2008 | 4.01% | 2.75% |
| 2009 | 2.96% | 1.82% |
| 2010 | 1.96% | 1.54% |
| 2011 | 1.72% | 1.39% |
| 2012 | 2.16% | 2.05% |
| 2013 | 1.93% | 1.93% |
| 2014 | 2.17% | 1.57% |
| 2015 | 2.37% | 1.01% |
| 2016 | 2.50% | 0.91% |
| 2017 | 2.63% | 1.01% |
| 2018 | 2.61% | 1.65% |
| 2019 | 3.30% | 1.80% |
Source: Author’s analysis of data from the National Income and Product Accounts (NIPA) data from the Bureau of Economic Analysis (Tables 2.1, 2.4.4, and 6.9B–6.9D). PCE stands for personal consumption expenditures.
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