Glassman Says Unemployment Rate Doesn’t Tell Whole Story

Jim Classman from JP Morgan Chase discusses the relationship between unemployment rates and wage growth. Despite falling unemployment, wages have not significantly increased. The Employment Cost Index is highlighted as a comprehensive measure of wages, though it may not capture all compensation forms. The true unemployment rate is higher than official figures due to factors like young people re-entering the job market. Wages are rising at 2.5% annually, outpacing inflation, indicating real wage growth.

What is the main topic discussed by Jim Classman in the video?

• Global economic trends

• The future of commercial banking

• Unemployment, job market, and wages

• The impact of technology on banking

Which measure is considered the most comprehensive for evaluating wages?

• Employment Cost Index

• Consumer Price Index

• Gross Domestic Product

• Average hourly earnings

Why might the official unemployment rate not reflect the true unemployment situation?

• It overestimates the number of employed people

• It does not account for seasonal jobs

• It excludes people who have returned to school

• It includes only part-time workers

What is the annual growth rate of wages and labor compensation mentioned in the video?

• 1%

• 2.5%

• 4%

• 3.5%

How does the current inflation rate compare to the wage growth rate?

• Inflation is not mentioned

• Inflation is lower than wage growth

• Inflation is higher than wage growth

• Inflation is equal to wage growth