Wage growth hits a record low

Wages and salaries in the United States rose by 0.2 percent in the second quarter, the Labor Department said Friday.

That’s the smallest increase since the Bureau of Labor Statistics began tracking workers’ pay in 1982 for its employment cost index.

In the first quarter of this year, wages grew by 0.7 percent.

{mosads}Over the last 12 months, though, civilian workers saw their wages and salaries increase by 2.1 percent; private industry workers saw a 2.2 percent increase; and state and local government workers saw a 1.9 percent increase.

This comes before the Federal Reserve’s September meeting as it weighs whether to raise interest rates. Chairwoman Janet Yellen has made it clear that such a move would be determined by improving economic conditions, including wage growth.

Meanwhile, the Commerce Department said Thursday that the economy grew 2.3 percent in the spring, which was lower than expectations. But that figure is much higher than the first quarter, when the economy shrank by 0.2 percent.