First, note the real average weekly earnings. Earnings for the year would be under $18,000.
The Federal Poverty Level for 2016:
- $11,880 for individuals
- $16,020 for a family of 2
- $20,160 for a family of 3
- $24,300 for a family of 4
The U.S. Bureau of Labor Statistics preliminary report for current and real (constant 1982-1984 dollars) earnings for all employees on private non-farm payrolls, seasonally adjusted for April 2016 are:
Real average hourly earnings $10.69
Real average weekly earnings $368.70
Average hourly earnings $25.53
Average weekly hours 34.5
Average weekly earnings $880.79
Consumer Price Index for All Urban Consumers 238.89. On a seasonally adjusted basis, the CPI for all Urban Consumers increased 0.4% in April after rising 0.1% in March. www.bls.gov/
Where is the consumer spending their earnings? When economic growth slows, non-cyclical industries tend to outperform cyclical industries. Non-cyclical are goods and services we need: food, household non-durable goods, power, water, and gas. Cyclical industries are manufacturing, travel, construction, new and used vehicles, fine dining, and apparel; sectors that can be cut when money is tight.
The U.S. Bureau of Labor Statistics noted the food index rose 0.2% in April after falling 0.2% in March. The food at home index increased 0.1% after declining 0.5% in March. The index for dairy and related products rose 0.4% in April. The indexes for cereals and bakery products and for nonalcoholic beverages both increased 0.3%. It is interesting to note that the indexes for fruits, vegetables, meats, poultry, fish, and eggs all fell in April.
The energy index rose 3.4% in April, which was its largest increase since February 2013. The gasoline index rose 8.1% in April. The fuel oil index increased 1.9% and natural gas rose 0.6%. The electricity index declined 0.3% in April. Despite the monthly increase, the energy index has declined 8.9% over the past year. The gasoline index has decreased 13.8% over the past year.
The indexes for rent and for owner’s equivalent rent both increased 0.3% in April, while the index for lodging away from home declined for the second straight month, falling 0.4%.
The medical care index rose 0.3% in April with prescription drugs rising 0.7% and the hospital services index advancing 0.3%. The physician’s services index declined 0.1%.
The recreation index rose 0.3% in April, as did the index for education, and the indexes for alcoholic beverages, tobacco, and personal care all posted slight increases.
In contrast, the index for household furnishings and operations declined 0.4% in April, its largest decline since April 2010. The indexes for apparel, for new vehicles, and for used cars and trucks each declined 0.3% in April. The index for communication declined 0.2%.
The consumer price index for May 2016 is scheduled to be released on June, 16, 2016. www.data.bls.gov
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I think you are comparing inflation-adjusted and non-inflation-adjusted numbers.
“First, note the real average weekly earnings. Earnings for the year would be under $45,800 (2016 dollars)
The Federal Poverty Level for 2016 (in 2016 dollars):
$11,880 for individuals
$16,020 for a family of 2
$20,160 for a family of 3
$24,300 for a family of 4
Average weekly earnings $880.79 = $45,800 (2016 dollars)
Real average weekly earnings $368.70 = $19,172 (1982-84 dollars)
I appreciate your input btn. Thank you for correcting my real average weekly earnings figure for the year to $19,172. In IL, the minimum wage is still $8.25 an hour. Not much higher than the poverty level.
Solid post wisprjet. Good information. One thing I’d like to throw in there is in regards to your question found in the title and a reason not provided: Healthcare. You listed non-cyclical industries, but didn’t mention healthcare. All in all though, strong information.
I understand the confusion. Healthcare.gov is where I found the poverty level information, basically just added the link. I wanted to know what consumers are spending money on, trying to find a correlation related to the decline in some sectors such as retail and an increase in others, such as healthcare. Which is a good point you have made, healthcare expenses were not covered as a service. It will be interesting to see the numbers for the consumer price index for May.