RJ and Makay

There was a 2% rise in wages and benefits in 2010, a slight improvement over 2009's 1.4% gain but still the second lowest wage/benefit increase in nearly three decades, according to the U.S. Department of Labor. The smallest increase was in 2009, the Labor Department notes.

The modest gains reflect the severity of the latest recession, which increased the number of jobless by millions and reduced the bargaining power of those with jobs. Weak gains in employee compensation are typically associated with low inflation. However, they also tend to constrain consumer spending, by far the largest component of economic growth.