Glassman Says Unemployment Rate Doesn’t Tell Whole Story

Jim Classman from JP Morgan Chase discusses the relationship between unemployment rates and wage growth. Despite falling unemployment, wages have not significantly increased. The Employment Cost Index is highlighted as a comprehensive measure of wages, though it may not capture all compensation forms. The true unemployment rate is higher than official figures due to factors like young people re-entering the job market. Wages are rising at 2.5% annually, outpacing inflation, indicating real wage growth.

How does the Employment Cost Index provide a comprehensive view of wages?

What factors contribute to the discrepancy between unemployment rates and wage growth?

What does the term 'pockets of unemployment' refer to in the context of the job market?

What is the significance of the 3,000,000 young people who vanished from the job market?

In what ways are real wages performing compared to inflation?