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	Home > Latest highlights Low Rate of Wage Growth to Continue, BNA Index Signals Arlington, Va. (Nov. 18, 2009) — The pace of annual wage growth in the private sector likely will remain at or near historic lows in the coming months, according to the preliminary fourth quarter Wage Trend Indicator™ (WTI) released today by BNA, a leading publisher of specialized news and information. The index dropped to 97.49 (second quarter 1976 = 100) from 98.00 in the third quarter, for the seventh consecutive quarterly decline. “The employment market is still weak, and employers remain fairly skittish about adding workers or giving big wage increases until they see how strong the recovery is going to be,” Kathryn Kobe, an economic consultant to BNA, said. High unemployment is strengthening employers' bargaining power over raises for their existing workforce, Kobe added. “This initial WTI reading for the fourth quarter suggests that labor markets are still adjusting to recessionary forces, and that we have to continue to expect a very low rate of wage growth,” economist Joel Popkin, who developed the index for BNA, said. Annual wage gains likely will continue at around 1.4 percent, the rate posted in the third quarter, according to the latest Department of Labor data, or could decline somewhat further in the months ahead, Popkin said. Reflecting weak labor market conditions, five of the WTI’s seven components made negative contributions to the preliminary fourth quarter index, while one was positive and one was neutral. Contact the Webmaster at webmaster@bna.com 1801 S. Bell Street, Arlington, VA 22202 - Phone: 1-800-372-1033 Copyright © The Bureau of National Affairs, Inc. All Rights Reserved.

Low Rate of Wage Growth to Continue, BNA Index Signals