Wage, Benefit Increases Worst in 25 Years

Washington, DC, Jan. 29, 2010--U.S. wages and benefits rose modestly in the fourth quarter, ending a year in which workers saw their compensation rise by the smallest amount going back more than a 25 years.

The anemic gains have raised concerns about the durability of the economic recovery. The fear is that consumer spending, which accounts for 70 percent of economic activity, could falter if households don't have the income growth to support their spending.

The Labor Department said Friday that wages and benefits rose by 0.5 percent in the three months ending in December.

For the entire year, wages and benefits were up 1.5 percent, the weakest showing since at least 1982.

The 1.5 percent increase in total compensation in 2009 was about half the 2.6 percent increase in 2008.