Many people believe the only path to higher wages is to put in more work hours, but there are actually many economic factors that go into deciding the number on each worker's paycheck. Watch this short video to learn more! Donate today to PragerU! http://l.prageru.com/2eB2p0h This video is part of a collaborative business and economics project with Job Creators Network and Information Station. To learn more, visit https://informationstation.org. Get PragerU bonus content for free! https://www.prageru.com/bonus-content Download Pragerpedia on your iPhone or Android! Thousands of sources and facts at your fingertips. iPhone: http://l.prageru.com/2dlsnbG Android: http://l.prageru.com/2dlsS5e Join Prager United to get new swag every quarter, exclusive early access to our videos, and an annual TownHall phone call with Dennis Prager! http://l.prageru.com/2c9n6ys Join PragerU's text list to have these videos, free merchandise giveaways and breaking announcements sent directly to your phone! https://optin.mobiniti.com/prageru Do you shop on Amazon? Click https://smile.amazon.com and a percentage of every Amazon purchase will be donated to PragerU. Same great products. Same low price. Shopping made meaningful. VISIT PragerU! https://www.prageru.com FOLLOW us! Facebook: https://www.facebook.com/prageru Twitter: https://twitter.com/prageru Instagram: https://instagram.com/prageru/ PragerU is on Snapchat! JOIN PragerFORCE! For Students: http://l.prageru.com/2aozfkP JOIN our Educators Network! http://l.prageru.com/2aoz2y9 Script: The health of an economy can be measured using a variety of indicators. Common ones include the unemployment rate, monthly job creation figures, and GDP—or the total value of all goods and services produced in an economy over a given year. But a less frequently used, although very important, indicator is wage growth. While it may not be the first thing to come to mind when thinking about the economy on a larger scale, wage growth is directly linked to things like sales performance at stores and restaurants, fluctuations in the housing market, and can even increase the standard of living. And when it’s your wages going up–it becomes very important. Because as wages rise, Americans spend more money. But the question is, what causes wages to rise? Well, there are several things that influence wage growth. Number one. Employers simply have more profits so they are financially able to raise worker compensation. These extra funds could be the result of a jump in business performance—caused by a hike in sales or a public policy change—such as a reduction in the tax rate. Number two. The market for labor becomes more competitive. This situation can arise when the number of job openings surpasses the number of people looking for employment—a circumstance referred to as a tightening of the labor market. The lack of available workers forces businesses to compete over job candidates by outbidding each other with perks, like higher wages, better working conditions, more vacation time, and other benefits. Number three. Typically, wages rise with skill and experience. Whether the skill or knowledge is acquired from a traditional higher education institution, trade school, or simply from on-the-job experience, wage levels will fluctuate based on the demand for these respective attributes. The rule of thumb? More education and experience in a field with room for growth equals higher wages. Wage levels can change for a number of reasons, but one thing is for sure. When the economy is doing better and unemployment is low–wages will be on the rise.

• published: 27 Sep 2018
• views: 831348