A very positive sign on the US jobs market

A very positive sign on the US jobs market. Analysts at Bank of America Merrill Lynch have picked up on a steady and unexplained rise in the amount of taxes being withheld from US paychecks (see chart below). Now this can mean a couple things. It can mean that US wages are starting to pick up. It can also mean that there are simply more people with jobs who are getting pay checks. The conclusion from BoAML is that the underlying increase in wages and salaries indicates an increase in the numbers of employed persons rather than increases in cash compensation rates. Read More: (VIEW LINK)