The rate of unemployment in the United States is at a level which is a low of 50 years and a survey recently has shown that as many as 23% of the small owners of business have described this finding as their biggest problem. Both the measures suggest that the market of labor is getting tighter and the growth of wage may accelerate as the employees are going to be forced to pay for the talent.
The last report of jobs had shown the wage growth to decelerate and the gains of only 2.9% which is the lowest it has been since the month of July in the year 2018.
The experts at the World Economic Forum have been discussing this in Davos and some of them have said that the markets of labor are healthy but the inflation of wages in general is still muted relatively, it has stayed close to 2.5-3% everywhere even when the markets of labor have been very tight. There are three major factors which are keeping the growth of wages stagnant as per the experts, these are the lack of increase in the meaningful productivity levels, the nature of average growth of wages which is misleading through figures, and the ability of the employers for going overseas and finding cheaper labor.
In the month of December, the statistics provided by the labor bureau has reported that there has been a decrease in the productivity by a level of 0.2% for 2019’s third quarter even though the increase in work hours has seen an increase by a level of 2.5%. With the report of World Bank suggesting that the growth in productivity has slowed all over the world