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Economists stumped by slow American wage growth

Economists continue to ponder slow-growing wages for American workers, even as the unemployment rate falls to to historically low levels. In a note to clients this week, Bank of America economist Michelle Meyer points out that:

  • The unemployment rate is 4.4%;
  • Companies have the most job openings available since 2001;
  • Workers are quitting at the fastest rate since 2007.

"All else equal, this seems like an equation for"normal" pace of wage growth of 3.5-4.0%," she writes. Yet we're only seeing worker pay rise by roughly 2.5% per year.