New data documenting the drop in Q2 2006 US GDP growth captured business headlines at the end of July and overshadowed even more dramatic data on the plunge in compensation that began in 2003. The Commerce Department reported subpar GDP growth of 2.5% for Q2 and small downward revisions in GDP growth from 2003 to 2005. More detailed revised data also showed that inflation-adjusted wages grew just 1.8 percent annually from 2003 to 2005, significantly lower than the 2.2% reported earlier. The significance of the new data on the downward trend in wages grew as Congress again failed to resolve the long-standing issue of raising the federal minimum wage.

Wages & salaries
Gross Domestic Product--GDP
Economic trends
Economic statistics