No Surprises in Payrolls or First Time Unemployment Claims Data- Both are Smack on Trend, Compensation and Hours Worked Soar

...

Average weekly earnings rose by 3.5% year over year. A closer inspection reveals that wage and salary inflation isn't quite that high, but it is above the Fed's 2% inflation preference.

...

The increase in hours and earnings could be a sign that the labor market is tightening in spite of the huge numbers of people out of work. The issue may be that many of the unemployed do not possess the skills that are in demand in the market.