I was looking at recently published statistics on employment and inflation (for September to November 2013). As far as I can tell, even if you take a pretty generous estimate of CPI inflation, we have less than 1% more people working but we are paying people about 1.3% less. We’re hiring more people by paying them less. And not only are we paying people less individually… we are paying the whole workforce less*!
How can any rational concept of recovery fit this data?
*If we hired 1% more people but paid the whole group the same amount you would expect the average wage to drop to just over 99% (which would keep the overall wage bill the same but make the average wage lower) but we’re paying about ~98.7%.