Elections have already given the public an opportunity to vent their anger about low wages and the scarcity of better job opportunities -- the former is prevalent among low-paid workers; the latter anxiety is wider. But concern is rising about a disconnect between jobs and pay.
- Pre-crisis nominal pay rises were in the 2-5% range in the advanced economies -- fuelling expectations of a pick-up in pay.
- US consumers could moderate their nominal wage demands, as lower inflation has eased the pressure on real wages.
- Competition and technological progress will continue to reduce the price of many manufactured goods and some services, helping households.