Pay Increase

[dfrecore]

If you look at unemployment over the last 10 years, it hasn't been low (don't look at the published U3 numbers, look at the U6 instead). That's a major factor. If unemployment is high, then the competition for labor is low, and wages are depressed (more people looking for jobs means companies can be pickier, employees have less bargaining power, fewer employees leave for better jobs, etc.).

Currently, the U6 number is 9.6% unemployment and in March 2010 it hit the peak of 17.1% So yes, it's about double of the "official" U3 number which is WAY off (but of course the government would rather publish that).

Here's a good place to look at it: U6 Unemployment Rate | MacroTrends