September 12, 2006 10:40 AM

Wages finally poised to rise
Posted by Douglas Eisenhartat 10:40 AM

Here's some good news on the job front. The Globe reports today that wages, which have been stagnant during the economic rebound, should finally begin to move upward:

The US job market remains strong, and that should translate into bigger pay raises for workers, whose wages have risen sluggishly during the current expansion, said a top economic adviser to President Bush.
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Wages haven't kept up with inflation, [Chairman of the President's Council of Economic Advisers Edward P.] Lazear conceded, but soaring energy costs are mostly to blame. With oil prices retreating, unemployment below 5 percent, and a growing economy creating demand for labor, workers should soon experience real gains.

"We are optimistic of a very good year in terms of compensation," he said.