Wall Street Journal (07/20/15) Eric Morath

Some economists and businesses say the Obama administration’s proposal to expand eligibility for overtime pay will more likely add to the number of low-paid workers. The revamped regulation would make about 4.6 million more workers eligible for overtime pay. Salaried employees earning less than $50,400 annually, or about $970 a week—more than double the current salary cap—would be eligible for time-and-a-half pay when they work more than 40 hours a week. The average annual wage for all U.S. workers last year was $47,230.

Some businesses are contemplating strategies that would run counter to the government’s effort to boost the wages of working-class Americans. Rather than increase the total compensation of salaried managers, companies could limit the hours of higher-paid employees by using more part-time workers. Goldman Sachs economists estimate the proposed rule will create about 120,000 new jobs in the year after it goes into effect. But the changes will not exert any meaningful upward pressure on wages, they conclude. The National Retail Federation says the proposal will not achieve the administration’s goal of increasing wages and will instead limit employees’ hours and block promotions.

Reuters (07/20/15) Megan Cassella

Thirty-five percent of economists reported that their firms had seen shortages of skilled labor during the quarter ending in July, according to a survey of 112 economists by the National Association for Business Economics released on Monday. U.S. employers are finding it increasingly difficult to find skilled employees, which could indicate more pressure on wage growth in the future. Survey chairman Jim Diffley said that the report shows “markedly increased shortages…especially of skilled labor.” The NABE survey also found that 49% of companies are anticipating wage increases in the next three months, up 3% from the April poll and 14% from last year, though the share of those reporting actual increases during the past three months held at 42%, down slightly from April’s 45% and last year’s 43%.

MarketWatch (07/17/15) Ruth Mantell

Consumers’ attitudes soured in July, with a gauge of their sentiment pulling back from June’s five-month high, according to reports on the University of Michigan gauge released Friday. The University of Michigan’s gauge of consumer sentiment fell to a preliminary July reading of 93.3 from a final June level of 96.1. Economists polled by MarketWatch had expected a July figure of 95. For context, the consumer-sentiment gauge averaged 86.9 over the year leading up to the recession.

The decline may be short-lived, economists say. A growing economy that’s adding a healthy number of jobs should boost confidence and support spending. Also, rising home prices have helped Americans gain equity in their properties, shoring up their personal finances.