In the last year, the most important question for US economists and economic journalists has changed from Where are the jobs? to Where are the wages?
It’s a problem best summed up by Matthew O’Brien in the Washington Post. As the labor market approaches full employment, there should be more pressure on wages to rise. In the graph below, that would look like a trend-line pointing up and to the left. Instead, as you can see in a half-a-second glance, the trend-line is a blob and it’s certainly not pointing up. The unemployment rate has fallen below 6 percent, and earnings growth is flat.