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US Wage Growth Lags 20 Other Countries Since 2009 Recession

US Wage Growth Lags 20 Other Countries Since 2009 Recession

(Dreamstime.com)

By    |   Wednesday, 07 September 2016 04:06 PM

What is U.S. wage growth lag? When America posts the worst salary recovery among a group of 20 other countries, which is what just happened, according to data from executive search firm Korn Ferry’s Hay Group.

According to USA Today's report on the data, America’s pay increases have been no match for several developed countries since the recession, and for the sixth year in a row U.S. employees are looking at another “3 percent median base salary increase in 2017.”

“U.S. salaries have fallen 3.1% after adjusting for inflation since Lehman’s bankruptcy on Sept. 15, 2008,” the data shows, which is “the worst among the G-20 group, which also includes the United Kingdom, Canada, France, Germany, Italy, Japan and Korea.”

Canada has the best pay recovery among the nations, USA Today noted. In Canada, the inflation-adjusted salaries have been rising 7.2% since 2008. As for others, Australia has experienced a pay raise of 5.9%, 5.2% in France, and 5% in Germany, to name a few.

America’s lag in wage growth has been blamed on its dominance in “low-wage sectors such as retail, restaurants and hotels, and healthcare,” said Benjamin Frost, a Korn Ferry product manager.

Even in the higher-paying positions, the U.S. lags, recently experiencing a 2% fall in “professional, mid-level jobs such as product manager, network administrator and entry-level accountant.” However, U.S. salaries did experience some kind of growth for senior managers, raising 3.5%, which still lags countries like Germany, which saw a 6% pay gain in senior management positions.

Labor unions have played a major role in America’s wage growth decline among other countries, mainly due to the fact that the influence of the labor union overseas is more prevalent than in the U.S., where unions have been on the decline for “decades,” USA Today noted.

While the grass does appear to be greener on the other side if you’re the U.S., there’s still a “silver lining” for Americans: The U.S. is among the elite when it comes to job growth, msn.com noted.

“The U.S. unemployment rate is at 4.9%, compared to 10.1% in the euro area.”

The Twitter community chimed in on America’s inadequate wage growth:

 

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What is U.S. wage growth lag? When America posts the worst salary recovery since the 2009 recession among a group of 20 other countries, which is what just happened.
us, wage, growth, lags
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2016-06-07
Wednesday, 07 September 2016 04:06 PM
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