By Gabrielle Olya February 24, 2020
If you’re hoping to make more money in 2020, your dream could become a reality. According to a January 2020 analysis by Goldman Sachs, wage growth is continuing to accelerate this year, with earnings expected to grow by 3.5% by the end of the year, CNBC reported. That could serve as a nice boost to your current paycheck.
But the rise in wages isn’t due to employers becoming more generous. Rather, it’s the result of several factors of the current economic climate.
1. The Unemployment Rate Is Expected To Decrease
Goldman Sachs predicts that the unemployment rate will drop from its current rate of 3.5% to close to 3%, CNBC reported. Unemployment has not reached 3% since 1952, according to Bureau of Labor Statistics data.
Why This Matters
“At the heart of our wage growth (and inflation) forecast is a view that declining slack will significantly boost wage growth,” Goldman Sachs economist Daan Struyven told CNBC.
A tight labor market typically leads to wage growth, which could be good news for your wallet.
2. There Are More Jobs Available Than People To Fill Them…