Wages

Wages mean money paid to workers for their labor. In simple terms, wages are what people earn from working. Wages are important because they affect household income, consumer spending, business costs, and inflation pressure. When wages rise, workers may have more money to spend, but businesses may also face higher labor costs. For example, if a worker earns $20 per hour and works 40 hours in a week, that worker earns $800 in wages before taxes. Wages are not the same as total income. Wages usually come from work, while total income can also include business profits, rent, interest, dividends, or other money received.