Wage compression
I wrote this paragraph two days ago:
Employers also may give workers raises at a slower rate; this is called “wage compression.” If it is hard to cut wages, wait and make sure the worker really deserves a pay increase. Wages will lag productivity, but the net result is fewer situations where a direct wage cut is necessary.
The implication of course is that low unemployment, and a stable macroeconomy, will mean that wages lag behind productivity. Here is my earlier post on wage compression.