However, they did not attempt to account for factors such as differences in employment levels between 2008 and 2019, as well as differences
in nominal wages between the two years, including the fact that Alberta will already have a $ 15 minimum wage in place by 2019, so this federal minimum proposal will not directly boost the wages of any workers in that province.
«The falls
in nominal wages that workers have experienced during this recession are unprecedented, and seem to provide at least a partial explanation for why unemployment has risen less — and productivity has fallen more — than might otherwise have been expected,» Claire Crawford, programme director at IFS, said.
This chart plots quarterly changes
in nominal wages for the bulk of working people.
And workers in advanced economies have experienced low growth
in their nominal wages.
Not exact matches
Since
nominal wages will have grown during this period, we need to account for the fact that a job paying $ 14.50
in 2008 would probably be above $ 15.00 by 2019, so would not be directly covered by the proposal.
«The recent behavior of both
nominal and real
wages point to weaker labor market conditions than would be indicated by the current unemployment rate,» Yellen said
in a speech to central bankers last week.
This phenomenon means that,
in nominal terms,
wages tend not to adjust downward when economic conditions are poor.
Unfortunately, budget forecasts do not provide a breakdown of the various components of
nominal GDP, such as
wages and salaries, corporate profits, interest income, etc., so it is difficult to properly assess the impact of changes
in the economic forecast to changes
in the major components of budgetary revenues.
A second issue is the unusually slow growth
in nominal and real
wages.
The reacceleration
in energy prices feeds into
wages because there is no more room to run and
nominal wages increase to keep real
wages stable.
But we believe a moderate rise
in the dollar is more likely, and the support for profit margins from better
wages, spending and
nominal growth reinforces our broadly positive view on risk assets and equities
in particular.
If the
nominal exchange rate does not adjust, then an alternative is for the real exchange rate to appreciate via a rise
in wages and domestic prices.
We see reflation — rising
nominal growth,
wages and inflation — accelerating globally
in 2017, led by the U.S..
Borrowers, mostly companies, oblige by halting the growth
in or cutting the
nominal wages of workers.
Since
nominal wages will have grown during this period, we need to account for the fact that a job paying $ 14.50
in 2008 would probably be above $ 15.00 by 2019, so would not be directly covered by the proposal.
To ensure that salaries and
wages paid to Ontario - based individuals for services provided
in the Province represent more than a
nominal amount of a corporation's total eligible expenditures, a qualifying corporation's Ontario labour expenditures (including labour under a service contract) would have to amount to at least 25 per cent of total expenditures.
Although San Francisco tech workers have the highest
nominal wages in the country ($ 134K annually), the study found that tech workers from nine other US cities are actually «better off.»