Wage stagnation

Wage stagnation occurs when workers' pay remains largely unchanged over time, despite rising costs of living and increased productivity. This means that, in real terms, people are not earning more to keep up with inflation, leading to a decline in purchasing power. Factors contributing to this include globalization, technological advances, declining union power, and shifts in the labor market. As a result, many workers experience limited income growth, affecting their economic well-being and spending ability, even as company profits and overall economic indicators may improve.