United States

The Real Economy: Volume 56

Wage growth and the end of business cycles


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Wage growth during the current business cycle has been weak compared to the past several economic expansions. The May U.S. employment report implied a growth rate in wages of 3.1%, which was accompanied by a 2.73% three-month average annualized pace, pointing to broader deceleration in the growth of overall wages. Both metrics have declined for the past three months, and it’s likely that wage growth has peaked in the current business cycle, which strongly suggests that the U.S. economy has entered the latter stages of the economic expansion.

In this issue of The Real Economy, we examine how employment and wage growth data offers a better assessment of where we are in the current business cycle, perhaps signaling to middle market businesses it’s time to stress test balance sheets, engage in more rigorous evaluations of potential acquisitions and increase process efficiencies. In addition, we look at key economic signals affecting business decisions; in our Industry Spotlight, we highlight technology and Slack’s direct listing; we launch a new feature called Middle Market Trend Watch—this time focusing on cyberthreats—and announce a new partnership between RSM and UCLA Anderson enhancing economic forecasting for businesses. Download the full issue.


Are direct listings the latest trend in tech?

Are direct listings the latest trend in tech?

Is Slack’s direct listing debut signaling a trend for other technology companies going public? We explore in our Industry Spotlight.

Middle Market Trend Watch: Cyberthreats are ubiquitous

Middle Market Trend Watch: Cyberthreats are ubiquitous

The Real Economy feature explores issues and trends affecting the middle market. This issue topic: The ongoing threat of cyberattacks.


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