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Wages Poised to Rise as Signs Emerge of Improved U.S. Job Market

Bloomberg (11/19/14) Richard Clough; Victoria Stilwell; Jennifer Kaplan

Various economic signals are indicating that wages are beginning to rise after years of stagnation. Wages and salaries increased during the last quarter by the largest margin since 2008, due to rising profits and sales. Certain industries and regions such as Texas and North Dakota are seeing booms thanks to the energy sector and home building, and these promising signs are expected to spread to other areas.

“Wage growth is beginning to bubble up,” says Mark Zandi, chief economist at Moody’s Capital Markets Group in New York. “It’s still nascent, early stages, but the labor market is now tightening to the point where we are beginning to see some stronger wage gains. This is the beginning of more definitive acceleration.”