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A decade after financial crisis, US lag wage rise even with full employment

Productivity growth in US has averaged just 1% since 2005, half the level of 1990-2004

Reuters  |  San Francisco 

The US economy is now a decade on from the start of the global financial crisis and at what most economists view as full employment, yet when it comes to wage rises, the answer seems to be forget about it. Government data on Friday showed that average hourly earnings in June rose just 2.5 percent on the year and have slowed in the past two quarters rather than accelerating even as workers become scarce due to continued economic strength. The lack of wage growth is mirrored across the developed world, most of which has staged a slower recovery than the United States. For ...

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First Published: Sat, July 08 2017. 12:41 IST