Payrolls and Inflation

Payroll growth has been declining since middle of 2006.  Notice payroll growth peaked at 2% far below any recovery before.

Payroll Growth...Update Apr'08

Payrolls lead inflation by about 9 months.

From 1970s...

Service Wage Inflation...Updated May'08

Wage inflation declining since December'06. Now 3.7%.

Notice the high wage inflation of the 1970s....peaked at 8.8% in 1981.