While the unemployment rate of 4.3% is at its lowest level since 5/01, 2.5%/year wage growth is very weak. Why? Here are several reasons. Declining US unionization rates and high unemployment rates in Europe and elsewhere have reduced worker bargaining power. Moreover, labor productivity growth has been zero the last four years. And, the retirement of many higher-paying Boomers and their replacement by lower-paid Millenials lowers average wage gains.