White House says wage stagnation hurt U.S. middle-class

President Barack Obama's economist team said on Thursday that the U.S. economy is recovering from the Great Recession at an increasing pace, but the stagnant wage growth posed threats to the lives of the middle- class.

According to "Economic Report of the President" that the White House submitted to the Congress, the post-recession economy has been growing at an annual rate of 2.8 percent over the last two years, an improvement from 2.1 percent growth during the first three-and-a-half years of recovery. Job growth rose 30 percent faster in 2014 than in 2013.

"These labor market improvements have begun to translate into wage gains for middle-class workers, but nevertheless, this recent progress cannot make up for decades of sub-par middle-class income growth," the report noted.

The report noted weaknesses in wages back to 1973 when productivity slowed and income inequality between the top 1 percent and the bottom 90 percent expanded. Since 1995, fewer Americans had begun to participate in the labor force, further compounding pressure on wages.

"The decline in the labor force participation rate earlier in this recovery is one such important challenge. Just over half the participation decline has been driven by an aging population as the 'baby boomer' generation has begun to retire," it said.

The 400-page annual report also used data to buttress Obama's domestic policy goals, including raising the minimum wage, increasing spending on education, overhauling the business tax system, and expanding international trade. Endite