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Shoppers search for Black Friday deals in a California mall on Nov. 29, 2013. Wage growth is expected to give a boost to U.S. consumers in 2014.
Shoppers search for Black Friday deals in a California mall on Nov. 29, 2013. Wage growth is expected to give a boost to U.S. consumers in 2014.
(JONATHAN ALCORN/REUTERS)

Three trends that suggest wages will rise in 2014

Economist and portfolio manager Guillermo Dominguez believes the “very serious old guy complex” of bearish economists are wrong, and the U.S. economy is on the brink of a rapid expansion led by wage growth and rising consumption.

Mr. Dominguez is a hedge fund manager for Florida-based New River Investments. In a recent blog post, he noted three trends suggesting an inflection point in America’s currently anemic job market. One, the labour force is no longer increasing in size. Two, public-sector employment has stabilized after a long period of decline (and shows signs of growth). Three, U.S. wages are growing at a rate seen in previous economic recoveries.