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Wage stagnation may be long-term business reality

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in Compensation and Benefits,Human Resources

Wages will rise less than 3% over the next three years, according to 82% of U.S. employers polled by the nonprofit National Association for Business Economics.

Most employers surveyed “expect wage growth to remain fairly subdued, rising between zero and 3% over the next three years,” said Ken Simonson, survey analyst and chief economist at the Associated General Contractors of America. “They also expect unemployment rates to eventually fall to between 5 and 6% as the nation continues on its path to recovery over the next three years.”

Only 11% of employers polled expect wage growth to exceed 3%. Since 1986, average hourly wages have increased by just 1% in inflation-adjusted dollars.

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