Part 3/10:
Employment Trends and Tax Legislation
Moser and Frankel noted a significant decline in the unemployment rate, which recently hit its lowest level since 1969, providing a positive outlook on employment conditions. However, despite wage growth of 2.8%, there were surprising findings from recent surveys revealing a lack of companies redirecting tax cut savings towards employee wages. A Korn Ferry survey indicated that only 14% of companies planned to use their tax savings for salary increases. Moser expressed curiosity about whether businesses would eventually invest more in wage growth or continue to prioritize shareholder returns through buybacks and dividends.