Minimal wages

9 January 2015 By Daniel Indiviglio

Strong employment growth last year was marred by a late hit to wages. Blame the workforce participation rate and low-paying new jobs. Minimum wage initiatives might help, though have their own drawbacks. Republican attempts to redefine the work week look even more ludicrous.

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The U.S. unemployment rate declined again in December, falling to 5.6 percent, according to the monthly Bureau of Labor Statistics report released on Jan. 9. The rate is at its lowest level since mid-2008. The American economy also added 252,000 jobs during the month, according to the report, slightly more than the Reuters consensus expectation of 240,000.

The labor participation rate was little changed over the course of 2014. But at 62.7 percent in December, it was down more than 3 percentage points from the end of 2007.

Hourly wages fell to $24.57, down five cents from the November level of $24.62. They ended the year 40 cents higher than in December 2013, a 1.7 percent increase.

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