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Profits are being squeezed by faster wage rises, strong currencies and the Asian slump.
The evidence is also clear: lower unemployment is associated with faster wage growth.
"I don't think we're going to see faster wage growth," she said.
Employees also enjoyed slightly faster wage growth and worked longer hours, which could bode well for future hiring.
Why hasn't America's falling unemployment translated into faster wage growth?To understand current patterns one first has to remember how American firms behaved during the 2007-09 recession.
German wages have been squeezed for a decade; faster wage growth would boost domestic demand and help to reorient Germany's economy (see article).
Similar(37)
The faster wages rise in China, India and other rapidly developing countries, the easier will it be for workers in advanced economies to compete with their counterparts in those countries.
There are not enough qualified workers to go around, causing rampant poaching and extremely fast wage inflation.
The fastest wage growth was 3% in finance and business services - don't curse please, it's unbecoming - and 2.7% in construction.
Companies that export grow faster, pay higher wages, and pay more workers.
Mention is made of benefits rising faster than wages (true, as wages have not kept pace with inflation – but many people receive a wage and tax credits).
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com