https://s2.yimg.com/bt/api/res/1.2/WphI5hi8meGKLNEtu6eygg--/...
So, incomes were flat or down for 14 years, and have since slightly rebounded to be just 4% less than in 2000, not 8% like they were. Shall I pop the champagne or do you want to?
Fact is, once enough slack is removed from a labor pool, wages rise. Happens every time.
It's exactly what occurred in the 1980s and 1990s. Wages weren't booming in the 1990s until the unemployment rate got to a certain low level toward the last several years of the decade.
I wouldn't expect wages to rise when U3 unemployment is 7% or 8%. I would expect to see it at closer to the 4% to 6% range. That's historically what has been the case, and we're seeing it happen again right now. If we add another ~3 million jobs in 2015, wages will rise at a healthy clip.
From a week ago:
"An important measure of household income rose in December by the largest amount in nearly 8 years, signaling a long-overdue rebound in family earning power."
"Data from Sentier Research show that median household income in December rose 3.3% from the year before, the strongest year-over-year reading since October, 2006"
http://finance.yahoo.com/news/families-are-finally-earning-m...
From July:
"U.S. Wages, Benefits Rise at Fastest Pace in Almost Six Years"
http://www.wsj.com/articles/employment-costs-rise-0-7-in-sec...