Wealthy nations are experiencing an unprecedented wage stagnation phenomenon, a fresh OECD employment report has said. The organization noted the current trend occurred despite falling jobless numbers.
The Organisation for Economic Co-operation and Development representing the group of 35 most industrialized countries warned Wednesday that wage hikes had been too modest to reflect recent developments on the labor market.
But this was not happening now, the OECD said in its latest employment report. It pointed out that wage stagnation was affecting median and low-paid workers much worse than high earners, warning that the slowdown "could undermine public belief in the recovery."
Researchers emphasized that tech companies had in no small way contributed to lowering average wage gains across OECD members. They said employees in innovative tech firms usually didn't adequately profit from productivity jumps as the companies in question tended to pass on a lot of the gains to investors.