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<blockquote data-quote="anonymous23456" data-source="post: 5636421" data-attributes="member: 104188">Why is overall wage growth still below prerecession rates and how is this related to salary budgets and structures?The expansion of the past decade is characterized by a tightening labor market but relatively slow economic growth and weak price inflation. The tightening labor market has a strong impact on the wages of new hires, which have been accelerating rapidly in recent years.However, wage increases for new hires are not typically included in salary increase budgets. This means that with almost no acceleration in salary budgets and structures, wage growth for existing workers has remained modest, reducing overall wage growth.In addition, in some companies, salary increase budgets generally do not include promotional increases or market adjustments, including large adjustments to comply with rapidly rising minimum wage laws in recent years.Salary structure movements and salary increase budgets may be more affected by cost of living adjustments than by labor market conditions, and, in the past decade, inflation has remained more muted than at any time since the 1960s. It has been documented that when inflation declines, a smaller share of workers receive cost of living adjustments. This may also explain why the share of job stayers (workers who stayed in their jobs over the past 12 months) with no change in wages over the past 12 months, has been well above historical rates over the past decade</blockquote>

[QUOTE="anonymous23456, post: 5636421, member: 104188"] Why is overall wage growth still below prerecession rates and how is this related to salary budgets and structures? The expansion of the past decade is characterized by a tightening labor market but relatively[B] slow economic growth and weak price inflation[/B]. The tightening labor market has a strong impact on the wages of new hires, which have been accelerating rapidly in recent years. However, wage increases for new hires are not typically included in salary increase budgets. This means that with almost no acceleration in salary budgets and structures, wage growth for existing workers has remained modest, reducing overall wage growth. In addition, in some companies, salary increase budgets generally do not include promotional increases or market adjustments, including large adjustments to comply with rapidly rising minimum wage laws in recent years. Salary structure movements and salary increase budgets may be more affected by cost of living adjustments than by labor market conditions, and, in the past decade, inflation has remained more muted than at any time since the 1960s. It has been documented that when inflation declines, a smaller share of workers receive cost of living adjustments. This may also explain why the share of job stayers (workers who stayed in their jobs over the past 12 months) with no change in wages over the past 12 months, has been well above historical rates over the past decade [/QUOTE]

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