Slumping Wages Won't Bring Deflation

Falling wages points to stubborn and deep-rooted challenges that still confront the U.S. economy.

Hot jobs. Cool wages.

Photographer: Jonathan Alcorn/Bloomberg

The decline of wage growth was the most puzzling aspect of this morning’s otherwise strong U.S. jobs report. Based on the entirety of recent macroeconomic data, this is more likely to be a short-term blip than a harbinger of damaging deflation. But it does point to stubborn and deep-rooted challenges that still confront the U.S. economy.

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