HONG KONG (Sept 17): Workers in the world's richest countries are getting their biggest pay bump in a decade, a step towards solving a labour market puzzle that's unnerving central bankers.

As shrinking unemployment in the US, Japan and the eurozone finally forces companies to lift wages to retain and attract staff, JPMorgan Chase & Co reckons pay growth in advanced economies hit 2.5% in the second quarter, the most since the eve of 2009's worldwide recession. The bank predicts wages will accelerate 3% next year.

Fatter wallets should support global economic growth already enjoying its best upswing since 2011, while encouraging central banks such as the Federal Reserve to keep tightening monetary policy before inflation takes hold. It may prove less welcome news for stock and bond prices.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Related Stories


    Stay updated with Singapore corporate news stories for FREE

    Follow our Telegram | Facebook