One reason wages aren’t rising faster: The gutting of middle-manager positions

Wage growth remains stubbornly low — and one trend across many U.S. companies could be contributing to the problem: Cutting middle managers.

Even though the economy added 263,000 jobs in April, the recent increase in wages appears to have leveled off. “Companies continue to flatten their organization,” said Brian Kropp, group vice president of the HR Practice at Gartner, a global research and advisory firm. “There are fewer opportunities to get promoted.” And that means less reason to bump up salaries.

Average hourly pay rose 6 cents $24.91 in April, according to data released by the Bureau of Labor Statistics.

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