Wage reductions expected to take years to reverse

Across the country, workers’ earnings are stagnating or, in some cases, declining. Employers big and small have resorted to slashing hours, and once-unthinkable wage cuts.

According to a recent Washington Post-ABC News poll, more than a third of Americans say they or someone in their household has had their hours or pay cut in the past few months. That’s a nine-point increase since a similar poll was conducted in February.

In recent months, falling energy and food prices have helped Americans stretch their money. But inflation could easily erode those gains if it returns to a more normal annual rate of about 3 percent.

Experts fear that wages will not keep up. Once the recession ends, economists expect, the recovery will be long and slow, with sluggish job creation. With a flooded labor market, employers won’t have to compete as much for talent and workers will have less leverage to push for higher pay, experts say.