Pandemic Job Losses Distorted Real Wage Growth Data, Economist Explains

Real wages (wages adjusted for inflation) are a key measure of economic prosperity and purchasing power for most people.

During the COVID-19 pandemic crisis in 2020, real wage data was very confusing and initially seemed to show a big increase.

The wage data was misleading because lower-wage workers lost their jobs at higher rates, skewing who was included in wage median calculations.

Unemployment skyrocketed from 4% to 15% during the early months of the pandemic in 2020.

Economist Dr. Arindrajit Dube explains how the composition of the workforce and wage distribution was altered by pandemic job losses, distorting real wage growth data.