The decades following the end of World War II were remarkable for their industrial innovation and creativity. From 1948 to 1973, output per hour of work grew by nearly 3 percent per year, on average. 8 But then, for the next 20 years or so, productivity growth averaged only about 1-1/2 percent per year, barely half its previous rate.
Thus, wage growth in these industries has been sluggish despite high demand in the labor force, the tightening of labor market conditions, and the remarkable increase in the number of employees (Chart 13). III.