Wage stagnation: The big freeze

Posted: September 5, 2014 in economy
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UK Only Article: 
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The long game

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Wage stagnation


Throughout the rich world, wages are stuck

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CENTRAL bankers once used to inveigh against wage inflation. Guarding against a return to the ruinous price-wage spirals of the 1970s was a constant preoccupation. Since the financial crisis, however, they have started to fret about the opposite concern: stagnant wages and the growing risk of deflation.
There has been a squeeze on pay in the rich world for several years now. Between 2010 and 2013 real (inflation-adjusted) wages were flat across the OECD, according to its annual “Employment Outlook”, published on September 3rd. Real wages have barely grown at all in America over that period and have fallen in the euro area and Japan (see chart). Declines have been particularly sharp in the troubled peripheral economies of the euro zone, such as Portugal and Spain, but real wages have also tumbled in Britain.

These sharp …

via Economic Crisis http://ift.tt/1pPToDn


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