NPR

Solving The 'Wage Puzzle': Why Aren't Paychecks Growing?

The job market is booming and the economy is expanding. So why aren't wages keeping pace? That's the wage puzzle, and some economists and employers offer explanations they say help explain it.
The job market is booming and the economy is expanding. But wage growth hasn't kept pace, which has many economists puzzled. Source: Adam Glanzman

A basic tenet of economics is that when demand for something goes up, so does its cost. So, many economists wonder why today's high demand for workers hasn't translated into bigger increases in pay.

Federal Reserve Chairman Jerome Powell has called this a puzzle that defies a single or easy explanation. It isn't just, for example, that productivity has slowed, making it harder for businesses to justify paying more — though that is certainly a factor.

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