Why are wages so slow to rise in the US?

In this theoretical construct, wages are slow to rise because they’re even slower to fall. So managers hold onto cash and delay salary increases because they know how hard it will be to cut them later. But my research shows this philosophy has flaws, especially in a skills-driven economy like we have today.

Why are wages not keeping up with the economy?

Opinions expressed by Forbes Contributors are their own. I analyze corporate HR, talent management and leadership. In the decade since the 2008 recession we’ve had an enormous runup in the stock market, accelerating growth in GDP, and a steady increase in job growth. Yet despite these positive economic trends, wages are not keeping up.

Why does management not want to raise wages?

As economists teach in school, management hates to raise wages because once you raise them, it’s hard to take them back down. And in the inevitable time of a recession or slowdown, you’re stuck with a high cost of labor. Managers are acting this way now.

Why are so many people not getting paid?

Nearly half of Americans have no retirement savings, creating increases in stress-related illnesses and heart disease Employers like Wal-Mart, McDonald’s, Ubers, and Outback Steakhouse are now building programs to pay people every day, so they can better manage their cash.

Why are minimum wage jobs getting harder to get?

The trend partly reflects the recession and slow recovery, which has brought weak wage growth for nearly all workers. But it also likely reflects longer-run shifts in the economy that have eroded workers’ bargaining power, particularly for the less-educated.

Why are so many people stuck in low wage jobs?

That suggests that workers who are forced to take low-wage jobs later in life have a particularly hard time escaping them. The large number of people getting trapped in entry-level jobs is at least partly the fault of the overall economy.

How many people are still working for minimum wage?

Older minimum-wage workers, perhaps unsurprisingly, face an even tougher time. More than 30 percent of those ages 25 or older are still working for minimum wage after a year. And more than 20 percent of those working for the minimum wage in 2008 were still in such jobs after about three years.