Although the unemployment rate is 9.7%, wages have in fact been increasing. In the past 12 months, the average hourly wage has increased by 1.9% and total salaries have increased by 0.7%. This might have to do with the fact that there are fewer people in jobs, so there is more money available for pay for people that do have jobs. Also, some businesses are increasing pay as an incentive to work harder.
This means more money in US consumers’ pockets. Approximately $42 billion extra dollars of spending or saving money. It is up to the average American if it will be spent or saved. Of course, Americans with jobs aren’t enough to help circulate spending in the economy; they need the 8 million, jobless Americans too. America’s economy will only get better if these Americans’ lives get better – meaning they are employed.
http://money.cnn.com/2010/03/04/news/economy/better_paychecks/index.htm
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