David Kelly, senior economics advisor for Putnam Investments, told CNBC’s “Street Signs” that the 4% year-over-year gain in hourly wages is encouraging, but still lags productivity growth.
“We are just seeing some catch-up here,” he said. “For most of this expansion, workers have been lagging behind. It’s good to see wages growing at about a 4% pace year-over-year. But for most of this expansion, workers have not received the productivity gains they have achieved. So, this has been a great expansion for corporate profits -- not a great expansion for the average worker.”