The reported acceleration in wage growth last month, which triggered the recent market sell-off, was nothing more than a weather-related distortion. The unseasonably cold January explains both the surge in average hourly earnings and the drop in average weekly hours worked. If history is any guide, those distortions will be unwound in February.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services