The Lewiston’s were like most families in America today. He supervised a warehouse and shipping terminal. She worked two part-time jobs in fast food and retail companies. Like many families, they had a daughter and her two children move back into the home. The daughter went away for several months leaving the children with her parents. Her mother had to quit both her jobs to stay at home with her grandchildren. The loss of her incomes coupled with increasing costs of the children, utilities, food and healthcare distressed the family finances significantly.
Indications of Better Times
This week the Census Bureau announced a .6% increase in consumer spending. The largest increase came from a 1.8% increase in auto sales. Typically, this news indicates an increase in consumer confidence. The economic wisdom decrees that people buy more things when they believe the economy will grow. Car purchasing especially indicates trust because people have to commit to such long-term financing.
In addition, the unemployment numbers indicated more discouraged workers began seeking jobs again. We see more help wanted signs appearing in windows. We also see more billboards advertising job openings along our highways. Further, many companies can not fill all of the opening for their jobs. They cannot find potential employees with the right skills.
Annual Raises Remain Small
In spite of the good news, some problems still persist. First, typical raises continue to fall below increases in the consumer price index. The majority of Americans received only a 12.8% increase in 2011. The consumer price index rose by 3.2% during the same period of time. As a result, most wage earners lost buying power by .6%.
The good news continued in 2012. The consumer price index last year rose only 1.7%. Data about raises in wages and salaries have not been released for 2012. Studies in August of 2012 forecasted a 3.0% salary increase. However, actual increases for the previous three years did not measure up to the forecasts.
Friday we highlight some changes in corporate human resource practices and processes
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