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We May Finally See Wage Growth

Aaron Levitt Sep 24, 2017

If we had to describe the recovery since the Great Recession in one word, it would have to be ‘slow.’

Everything from GDP growth to manufacturing gains have all moved in a lethargic manner. And while we have finally seen the economy heat up over the last year or so, it’s pretty slow going by America’s traditional standards.

And one of the biggest reasons comes down to wages.

While there are many long-term trends affecting wage growth, the recession really did a number on workers’ wages. And that has been a major reason for the slow recovery and less than ideal growth.

But we may be in the early stages of seeing some real wage growth. For investors, that could be the best news since the recovery.

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Massive Job Losses

The Credit Crisis and resulting recession were the worst economic collapse since the Great Depression. So it’s no surprise that unemployment skyrocketed during that time. As a variety of sectors – from manufacturing to financial – felt heavy losses, the unemployment rate rose to above 10%. All in all, the U.S. economy shed nearly nine million jobs.

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