Workers in world's richest economies see biggest pay hike in a decade

Fatter wallets should support global economic growth already enjoying its best upswing since 2011 while encouraging central banks to keep tightening monetary policy before inflation takes hold

Workers in the world’s richest countries are getting their biggest pay bump in a decade, a step toward solving a labour market puzzle that’s unnerving central bankers.

As shrinking unemployment in the US, Japan and eurozone finally forces companies to lift wages to retain and attract staff, JPMorgan Chase & Co. reckons pay growth in advanced economies hit 2.5 per cent in the second quarter, the most since the eve of 2009’s worldwide recession. The bank predicts wages will accelerate 3 per cent next year.

Fatter wallets should support global economic growth already enjoying its best upswing since 2011 while