Here's why robust US job market isn't producing better pay

Recent reports show some slack remains to be absorbed

Growth in Americans’ wages has been levelling off lately, contrary to expectations that a steadily falling jobless rate will quickly lead to a sustained acceleration.

Blame it on dismal productivity and lingering, albeit diminishing, slack even with unemployment at an almost 10-year low of 4.5 per cent.

The government’s most recent jobs report showed the underemployment rate — the broadest gauge of joblessness because it also includes marginally attached workers and those working part time who’d prefer a full-time position — also has been falling though it’s still higher than just before the 2007-2009 recession. 

Data this week were also less encouraging. The