The U.S. economy is improving steadily. The unemployment rate continues to fall. Usually, when companies expand their workforces and start hiring, the supply of workers dries up and wages start to climb faster.
But that's not happening right now. Wages are rising at a measly 2.6 percent. That's barely higher than inflation.
Elise Gould, a senior economist at the Economic Policy Institute, says the way we classify workers misses a key part of the potential workforce. And there's a lot more slack in the labor market than you'd think just by looking at the unemployment rate.
Newly Employed People Who Weren't Looking for a Job
Prime Age Employment
Music by Drop Electric. Find us: Twitter/ Facebook.
Subscribe to our show on Apple Podcasts, PocketCasts and NPR One.