The growing size of US businesses may be one reason wages are growing by the sluggish annual rate of 2pc even though the jobless rate has fallen sharply. Over 46pc of private-sector employees now toil for companies with 500 or more workers, up from 44pc a decade ago, and small businesses have seen their share of employment slip. Employees are less able to demand higher wages, because, in effect, there is decreased competition for workers, the Journal says.

(Source: The Wall Street Journal)

Published in Dawn, Economic & Business, December 22th , 2014