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Harvard economist on April jobs report: Wages not keeping up with inflation 'concerning' and 'problematic'
US economy adds 428,000 jobs in April
FOX Business’ Edward Lawrence with more on the April jobs report.
Harvard University professor Kenneth Rogoff argued on Friday, shortly after the release of the April employment report, that "the fact that wages aren’t keeping up with inflation is quite problematic politically and quite concerning."
The former chief economist at the International Monetary Fund provided the insight during an interview with Fox News Digital after the Labor Department revealed that average hourly earnings rose by 5.5% year-over-year in March, down slightly from 5.6% the month before. The data comes amid surging inflation, which hit a fresh 40-year high in March.
"We have a white-hot labor market, why wouldn’t wage increases be bigger? One tends to guess that still lies ahead," Rogoff said, stressing that he expects that "there is significantly more wage growth to come."
US ECONOMY SEES HEALTHY JOB GROWTH IN APRIL AS PAYROLLS JUMP BY 428,000
"It was just one number and you have to suspect that overall the wage pressures are just going to be enormous given the shortage of workers and the cumulative price increases we’ve seen already with much more to come," he continued.