Where are the pay raises? Employers in the United States are hiring at a brisk pace. Unemployment has sunk to a nearly healthy rate. Jobs are being filled across a range of industries. Yet the September jobs report released on Friday contained a puzzling fact: Pay-checks still aren’t growing.
Economists regard stagnant wages as a red flag for the 5-year-old recovery. Robust job growth has typically fuelled rising wages. And without higher pay, workers have less money to spend and save — and that, in turn, keeps the economy from strengthening further.