Wage Stagnation

Wage stagnation refers to flat or falling wages; since the 1970s, wages have barely increased for the great majority of workers in the United States. From 1979 to 2013, hourly compensation for all workers rose only 8.9% in real (inflation-adjusted) terms. Wages have stagnated across all educational levels and almost all occupations. Workers without college degrees have seen their wages decline, while college graduates and workers with advanced degrees have seen increases of only about 1% per year. In recent years, the stagnation has been even more pronounced; from 2001 to 2012, wages overall increased by less than 1%. They declined in sales and service occupations and increased only 2% for managers and professionals.