Why Low Unemployment Rate in the United states Has not Delivered Meaningful Wage Growth

Abstract

Wages have always been one of the most important concerns for employees and unemployment is one of the most important statistics for society. After studying the unemployment rate and wage growth data in the United States in recent years, it is evident that a low unemployment rate does not lead to meaningful wage growth. This paper explains that the main causes of this are domestic and foreign factors in the United States. This paper divides the influencing factors into two broad categories (domestic factors and foreign factors) and summarizes the foreign factors into the composition of employment, the productivity of labor and companies, inflation and labor unions, and the foreign factors are attributed to the effects brought about by globalization.