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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.
Nonetheless, if we get the fall in unemployment that I'm expecting, confirmation of 0.5% growth in Q4, and signs of faster wages early in the new year, it's not going to be another year until the next hike.
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Faster productivity growth fuels faster wage growth and rising per capita incomes.
Profits are being squeezed by faster wage rises, strong currencies and the Asian slump.
"I don't think we're going to see faster wage growth," she said.
The evidence is also clear: lower unemployment is associated with faster wage growth.
It was up 2.4percentt, implying that faster wage growth last year mostly benefited higher-paid workers.
Employees also enjoyed slightly faster wage growth and worked longer hours, which could bode well for future hiring.
He said the nation's competitors with lower tax rates experience faster wage growth (see chart below).
German wages have been squeezed for a decade; faster wage growth would boost domestic demand and help to reorient Germany's economy (see article).
We expect unemployment to fall to 4.9% by the end of the year, further tightening in the labour market should begin to contribute to faster wage growth too".
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