real-time news and commentary for investors
Monday, Aug 26
Lack of wage growth affecting economic expansion
- Even though the economic recovery may be fours year old, wages are still below the level they were at when the recession ended, with the average hourly pay for a non-government, non-supervisory worker $8.77 last month vs $8.85 in June 2009.
- The main factors for the stagnant wages, which has been crimping the recovery, include low inflation, high unemployment, globalization, and the tendency of companies to cut jobs growth during the recession rather pay.
- The retirement of baby boomers is forecast to help lower the growth in medium incomes by around 0.5% a year through 2030.