In recent studies there are several factors explaining possible reasons why US workers are not making near as much as in the past. One thought is due to fewer workers in the union. The rate of pay is also decreasing which makes part time work less appealing. Another downfall is trade around the world. More focus is being directed toward wealthier areas and is creating inequality and is making earning income more difficult in lower class places. Although this will be difficult to change across the board, changes are trying to be made to make any positive effect.
- Declining union support could be a significant ingredient in explaining stagnant wages.
- Labor’s smaller slice of the economic pie could also be in part a result of industry’s ongoing turn towards automation.
- While some tout an escalation in production can right the lackluster pay problem, others note that production has more often benefited corporations over employees.
“Federal Reserve Chair Janet Yellen and other top economists say productivity is the key to long-run wage growth for American workers.”