The Fed asked non-self-employed workers whether they'd prefer to work more, less, or the same amount that they now work if their hourly wage was unchanged. The goal of the question was to help gauge the amount of underemployment in the economy, according to the report.
The Fed signaled corporations they can continue with their lid on wage increases:
Still, if a large enough share of people are willing to work longer hours at their current rate, that limits the pressure employers feel to raise wages. Average hourly earnings were up just 2.2 percent in the year ended April.A Jeffries LLC money manager offered:
"Until workers perceive that there are more opportunities available that offer higher wages, they will be content to work for the same rate rather than take a risk for more."
I saw no question about worker contentment with current wages. In addition, there were no questions on risks employees might take to increase their income. Chairwoman Yellen, signal delivered.