Predicting the movement of wage levels is anyone’s guess. While favorable market conditions such as low unemployment, increasing minimum wages, tax cuts, and strengthening of our economy may appear to favor the worker, then why aren’t wages rising?
Factors such as decreased union participation, mergers and acquisitions, global supply chain, offshore labor, automation, and artificial intelligence all have had the effect of mitigating increases to pay levels.
Recently, U.S. economists have been studying the effect of a few concentrated labor buyers (companies such as Amazon, Walmart, Netflix, FedEx, etc.) in major cosmopolitan areas. Since these companies dominate the price of employment, as labor purchasers they can also materially influence the equalization of the free-labor market wage balance.