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The Kansas City Star, Mo., Randolph Heaster Column: Average Pay Raise is Likely to Be Below 2 Percent
Tuesday, July 28, 2009 3:54 AM


(Source: The Kansas City Star (Kansas City, Missouri))trackingBy Randolph Heaster, The Kansas City Star, Mo.

Jul. 28--With unemployment rising and the available labor pool expanding, don't expect a sweet raise to kick off 2010.

The average annual pay raise at year-end and to start 2010 most likely will fall below 2 percent.

BNA Inc. said the final second-quarter reading of the Wage Trend Indicator was 98.55, down from 99.35 in the first quarter. The index, based on a reading of 100 for the 1976 second quarter, dropped for the fifth straight quarter.

It also was the index's lowest reading since the second quarter of 2004, when the indicator was at 98.28.

BNA's index compiles and calculates economic data that forecast what the private sector's annual wage increases will be in the next six to nine months. The actual annual pay raises are calculated by the U.S. Department of Labor's Employment Cost Index.

Federal statistics showed that the average annual wage increase in the first quarter was 2 percent, an all-time low since the government began tracking pay raises in 1980. The BNA index shows that it will most likely fall below 2 percent in the coming months.

The Labor Department figures showed that the average annual wage increase in 2008 was 2.6 percent.

"The WTI is still pointing to continued deceleration in annual wage increases in the near term," said economist Kathryn Kobe, who helped develop the index. "Labor market conditions are extremely weak. We're in a much different employment situation than just a couple of years ago."

Six of the index's seven components had a negative impact on the reading. The negatives were a decline in the share of employers planning to hire production and service workers in the coming months, more employers having trouble filling professional and technical jobs, job losers as a percentage of the labor force, the unemployment rate, the average hourly earnings of production and non-supervisory workers, and industrial production.

A rise in the expectation for inflation was the index's only positive factor.

At the wheel

Several area truck drivers placed in state driving competitions last month.

At the Missouri Truck Driving Championships, John Aquino, FedEx Express driver from Kansas City, placed third in the step-van class competition.

These drivers placed at the Kansas Professional Truck Driving Championships:

--Straight truck: First place, Robert Benge, Olathe, Kraft/Nabisco; third place, Dale Perry, Raytown, UPS Freight.

--Four-axle van class: Second place, Gary Harms, Olathe, Wal-Mart Transportation.

--Five-axle tank class: First place, Stevan Dixon, Overland Park, Wal-Mart Transportation; second place, Troy Lape, Olathe, FedEx Freight.

--Five-axle sleeper berth class: First place, Gary Stackhouse, Gladstone, Convoy Systems.

--Twin trailer class: First place, Kevin Mailand, Lawrence, YRC; second place, Mark Asbury, Kansas City, UPS Freight; third place, Jeffery Thompson, Olathe, FedEx Freight.

First-place finishers advance to the 2009 National Truck Driving Championships beginning Aug. 18 in Pittsburgh.

To reach Randolph Heaster, call 816-234-4746 or send e-mail to rheaster@kcstar.com.

-----

To see more of The Kansas City Star, or to subscribe to the newspaper, go to http://www.kansascity.com.

Copyright (c) 2009, The Kansas City Star, Mo.

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