novel coronavirus pandemic quickly turned what was a jobseekers’ labour market into a wasteland with millions out of work. What it is doing to wages, though, is less clear.Research suggests many employers are loath to cut pay for existing employees, fearful of the impact this can have on morale.
Instead, they prefer letting go of some workers and preserving the wages of those who stay. Companies also often implement pay and hiring freezes to help keep costs in check.The result is that wages flatline for a while — sometimes years — until the job market heats up again.