By many measures, the country’s economy is continuing on its upward trend.
The U.S. Bureau of Labor Statistics reported 242,000 new jobs in February 2016, with the unemployment rate unchanged at 4.9 percent. Industries with the highest number of jobs gains were health care and social assistance, retail trade, food and beverage and private educational services.
While these industries may have the highest number of jobs available, they’re not necessarily the highest-paying jobs. With the exception of doctors, most of the highest salaries go to people who work in the technology industry or hold a mid-level position that requires data analysis for strategy and product management.
[CLICK HERE to read the article, “Employment Situation Summary” from U.S. Bureau of Labor Statistics, March 4, 2016.]
[CLICK HERE to read the article, “25 Highest Paying Jobs in America” from GlassDoor.com, March 9, 2016.]
Another bit of good news is that, according to one 2016 salary forecast, workers across the country are expected to receive their biggest pay increase in three years. In many households, that may be the most significant indicator that the economy is recovering.
However, one of the lessons we learn from stagnant wages is how to “tighten the belt” and live on less. Just remember that if you do get a significant raise this year, one of the possible ways to utilize it is by investing. The more you invest today, and the longer your money has time to grow, the greater the potential for higher income in retirement. Please remember that investing involves risk, including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. If you’d like to discuss ways to potentially optimize an increase in household income this year, let’s talk.
[CLICK HERE to read the article, “Employees Will Get the Biggest Salary Increase in Years In 2016” from FastCompany, Jan. 11, 2016.]
[CLICK HERE to read the article, “United States Wages and Salaries Growth Forecast 2016-2020” from Trading Economics, 2016.]
The combination of lower unemployment and higher wages also means people may be able to spend more money. This, in turn, drives economic growth, as is reflected in the 2016 outlook for the nation’s GDP. Greater consumption may also lead to higher production, distribution, revenues and return on investment for investors.
[CLICK HERE to read the article, “GDP Growth Slowed by Strong Dollar's Drag” from Kiplinger, Feb. 26, 2016.]
[CLICK HERE to read the article, “This map will change the way you see the US economy” from World Economic Forum, Feb. 15, 2016.]
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