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If the Nairu is 6% rather than 5%, real GDP growth would be around a quarter of a percentage point lower over the 40-year projections, which would also mean slower wages growth and lower inflation.
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"Compared with permanent workers, temporary workers face substantial wage penalties, earnings instability and slower wage growth".
Last week the Bank of England governor Mark Carney has predicted even slower wage growth of 1.25% over the course of the next year.
A.W. Phillips had found that, historically, faster increases in nominal wages coincided with high rates of employment, while slower wage increases went alongside higher levels of joblessness.
Even for those who escape layoffs, a deteriorating labor market (unemployment spiked from 4.8percentt in February to 5.1percentt in March) means slower wage growth.
Blaming the slower wage numbers on Brexit is putting the cart before the horse because the wage data lags [other measures of the economy's health] by a considerable margin," he said.
But retailers are under pressure as analysts at UBS warned of a more cautious outlook for the high street, with uncertainty over Brexit and slower wage inflation, as well as foreign exchange effects and the growing impact of Amazon.
"Wage restraint helped limit job losses during the recession and encourage a rebound in employment after, but slower wage growth and real declines in some countries has also reduced the incomes of many households, further contributing to economic hardship," it said.
It also said that slower wage growth was hurting people's ability to spend, dampening the prospects for growth.
The globalisation of the last 30 years may have contributed to lower interest rates, slower wage growth and booming asset markets.
Slow job growth and even slower wage growth has helped paint a recessionary picture for many Americans.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com