The underemployment rate ( U-6 rate ) is still close to 10% in the US, so surplus requirements can be met via this pool of people. Therefore , the labour market isn't as tight as the headline unemployment rate of 5% or thereabouts indicates so wage pressure still isn't strong. The U-6 rate has dropped about 4% in the last 2 years so I would suggest that these conditions won't exist too long so if there isn't any wage pressure say next year then something is definitely wrong. What it does show is their priorities in the US. Capital investment isn't booming and wage growth is anaemic yet companies are set to return a record $1trillion dollars via dividends and buybacks this year. Conversely in Japan they are now experiencing a lift in corporate profits and they have choose to give it back to employees. Which ironically has helped boost consumer confidence and retail sales as is the only bright spot in their economy.
