Ostensibly there was plenty to be pleased about. Employment rates are looking bright and higher than prior to the crisis (61.7% at the end of 2017 vs. 60.8% a decade earlier). Furthermore, unemployment rates among the 35 OECD countries are close to, or lower than levels in 2008, and the downtrend is expected to continue with estimates of 5.3% for 2018 and 5.1% for the end of 2019. Improvements are especially noted in the most disadvantaged categories, namely, youths, immigrants, mothers of young children, and older workers. However, in its OECD Employment Outlook 2018 report, published on 04 July, the international organization tempered its tone stating ‘Economic growth is picking up and unemployment has reached record lows in some OECD countries but wages continue to stagnate. Unless countries can break this cycle, public belief in the recovery will be undermined and labour market inequality will widen.’
Lackluster wage growth. At the end of 2017, nominal wage growth rates were less than half the pre-crisis rate in 2007, yet the average unemployment rate was almost identical. The average nominal wage increase at the end of 2017 was 3.2% compared with 5.8% a decade ago.
Several causal factors have been put forward, especially both the low level of inflation and the growth in low-paid jobs, with for instance a significant reduction in average pay for part-time workers relative to full-time workers
…Do you have information to share with us?