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Weak Wages Pose Threat to Liftoff for Economy

Wall Street Journal (05/30/14) Jonathan House; Jon Hilsenrath

The U.S. economic recovery is being threatened by stubbornly weak wage growth, resulting in a weak start to the second quarter that troubles economists expecting a growth breakout. Wage and salary income growth slowed to 0.2% in April from a month earlier, the weakest monthly increase of the year, according to the U.S. Department of Commerce. After taking inflation into account, wage and salary income was up 2.0% from the year before. Many of the new jobs being created are temporary or part-time in low-paying industries.