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Barry Ritholtz

Bigger Raises Might Be Coming in 2018

Thank tightening labor markets, higher minimum wages and steady growth.
It's getting better.

It's getting better.

Photographer: Luke Sharrett/Bloomberg

Tight labor markets and rising minimum wages are leading to real pay increases for lots of Americans.

These are two economic trends I have been writing about for the past several years. The tightening job market was one of the hidden stories of the early stage of the recovery from the great financial crisis. Once the unemployment rate fell below 5 percent in early 2016, economists and others began recognizing what was more or less inevitable.