Nebraska's Manufacturing Wages Increased Slower In Past Year, According to Creighton Survey

Oct. 4, 2021, 10:44 a.m. ·

Ernie Goss of Creighton University in a building with a staircase behind him.
Creighton Professor Ernie Goss is the head of the university's economic forecasting group. (Photo courtesy of Creighton University).

Results from an economic survey of supply managers in the Midwest show slowing growth in Nebraska’s economy. The Mid-American Business Conditions Index, coordinated by Creighton University, reports a 65 for September’s economy in Nebraska, down three points from August. The index scales from 0 to 100, with numbers above 50 indicating growth.

Creighton professor Ernie Goss leads the monthly survey and says manufacturing worker wages have increased by one percent since last year. That was less than the 5% wage raise the year before.

“We’re going to see those increases. I mean, there’s no way we’re going to see that slow growth in wages. Wages are going to be pushed up,” Goss said. “The problem is they won’t be pushed up as much as we’re seeing in terms of prices and inflation, so workers are seeing ‘real wages’ that would be inflation-adjusted wages coming down.”

Shortages in labor, materials and slow product movement are raising prices and stunting supply. Goss says we could see empty shelves leading into the upcoming holiday shopping season.

Additionally, Goss says inflationary pressure will likely increase long-term interest rates in the future.

For Nebraska’s September survey results, high export rates are keeping its economy growing.