TODAY’S labour market report showed that the American economy created 156,000 net new jobs in August. That was a bit less than expected, but payrolls are still growing comfortably faster than the working-age population. Despite having created over 2m jobs in the last year, pushing unemployment below 4.5% for the last five months, wage growth remains muted, at around 2.5%, compared to more like 3.5% the last time unemployment was comparably low. In a recent article for the print edition, I anlysed one potential explanation for weak wage growth: retirements of high-earnings baby-boomers.
from Business and finance http://www.economist.com/blogs/freeexchange/2017/09/americas-labour-market?fsrc=rss