If we are in a "full employment" economy why isn't there more wage growth ?

[DemocratSinceBirth]

Classical economic theory suggests there should be more wage growth in a " full employment economy" because employers are competing for a smaller pool of available workers.

[Iliyah]

1. I'm one that don't believe in whatever comes out from the present

government as being truthful. And yes, they can "lie" and falsely claim numbers while average Americans suffer.

[DemocratSinceBirth]

3. If BLS was cooking their number we would likely see glaring anomalies

[kentuck]

2. Because young workers have been programmed to accept what they are given...

They probably do not believe that much in unions.

Someday they hope to lead those corporations that are withholding the wealth created by their labor force.

[marylandblue]

4. Because the good jobs that used to drive wage growth are gone

[greymattermom]

5. How much of employment is in the gig economy?

It's all hourly with no benefits. My daughter works in a job like that, and they haven't had a raise in 4 years. The employees have no loyalty at all, and when anyone gets an offer of even 50 cents an hour more, they're gone. They have to train the replacements, and they only keep about half of the trainees. This is the new full employment, but that can change too, and it will when the cost of training 30 new people to get 15 hourly employees is more than the cost of giving the current crew a small raise.

[malthaussen]

6. I believe the jobs are different.

Classical economic theory no longer applies. While I don't have any systematic data at hand, anecdote suggests that though "employment" may be high, the jobs are such as can be filled by about anyone, which wouldn't increase the cost of labor. I also suspect that the compelling drive to do "more with less" encourages employers to pile more work onto the employees they have, rather than hiring additional ones.

-- Mal

[DemocratSinceBirth]

7. Wouldn't

I also suspect that the compelling drive to do "more with less" encourages employers to pile more work onto the employees they have, rather than hiring additional ones.

Wouldn't that show up in production figures which have been mediocre ?

[malthaussen]

8. Might not...

... productivity per capita can increase, but if you simultaneously cut employees, then net production stays the same. Thus skilled workers move into the labor pool, take whatever unskilled job they can get (baristas produce nothing, after all), and production is stagnant. Though I'd have to see some solid figures to back up that hypothesis.

-- Mal

[IronLionZion]

9. Companies got those fabulous tax cuts

don't worry. It should trickle down all over us very soon. Just keep waiting. patiently. prepare a nice raincoat for the trickle that is coming.

[unblock]

10. First, unions are far weaker than they have been

Second, many people dropped out of the workforce starting with the financial crisis, whether retirement or school or stay-at-home parent. These people are coming back, helping to keep wages down.

Third, we still have productivity gains, which mean business don't need to hire as many people.

Fourth, while the outsourcing fad isn't what it used to be, it remains an option. If wages go up too much businesses will just outsource more.

[Adrahil]

11. I'm not sure how that number is calculated, but....

I think it probably reflects a continued elimination of well paid wage-level jobs through the continued de-unionization of industry.

And we continue to shift to lower-paid service industry jobs.

[beachbum bob]

12. wages have trended up...employers are resisting as usually but the fight for

workers, especially good workers is a growing problem. Throw in a few hundred 1000s of "dreamers" who maybe deported, companies will soon be in full panic

[workinclasszero]

13. Because unions are pretty weak or

non existent in most areas of labor thanks to the anti worker policies of the damn republicans.

If you think these Wall Street raider capitalist bastards are suddenly going to do the right thing without being forced to by a union, you are living in a dream world.

[GulfCoast66]

14. Because the American people, including several participants in this thread have been tricked...

Tricked into believing that only manufacturing jobs should pay well forgetting than Manufacturing jobs paid shit before unions changed that.

So everyone doing service work just accepts that their jobs will and should pay low wages.

If Wall Mart and all the others were suddenly unionized, the workers would begin getting a more fair share of corporate revenues.

[meow2u3]

15. Employers colluding to fix wages, maybe?

https://www.shrm.org/resourcesandtools/hr-topics/talent-acquisition/pages/wage-fixing-nonpoaching-agreements-illegal-ftc.aspx

The federal government stated unequivocally that it is against the law for employers to agree to fix wages or to not hire one another's workers. Those agreements—whether entered into directly or through a third party such as a trade association—are illegal under antitrust laws, and violations could lead to criminal prosecution against individuals and employers.

The Antitrust Division of the Department of Justice (DOJ) and the Federal Trade Commission (FTC) released guidance Oct. 20 to alert HR professionals to potential violations of antitrust laws, including entering into nonpoaching or wage-fixing agreements with competing companies.

"The messages are simple—workers are entitled to the benefit of competition for their services, and firms should avoid reaching agreements with competing employers that would fix wages or other terms of employment, or prevent them from competing for workers," the FTC said. "HR professionals often are in the best position to ensure that their companies' hiring practices comply with the antitrust laws. In particular, HR professionals can implement safeguards to prevent inappropriate discussions or agreements with other firms."

https://www.huntonlaborblog.com/2018/02/articles/employment-policies/doj-antitrust-chief-warns-criminal-prosecutions-wage-fixing-anti-poaching-agreements-forthcoming/
(contents at link)

https://www.justice.gov/atr/file/903511/download

[Initech]

16. There is wage growth - for the executive class!

The rest of us will have to fight for the peanuts we are given and like it. Meanwhile the rich get the whole damn peanut farm.

[uponit7771]

17. We're not!!!, the LFPR is falling .............. AGAIN !!!