Carla Javier

Nicole Servi at Wells Fargo says companies have been spending more on equipment and tariffs.

And so I think what we're seeing is that the worker is not being prioritized right now in terms of those productivity gains.

Companies are nervous about spending money on anything right now, says Courtney Schubert, an economist with Macro Policy Perspectives.

If you're uncertain about your business environment or what demand is going to look like, maybe you hold off on passing along some of those profit increases in part just to protect margins.

But Shepard says the big factor holding back wage growth is the weakening labor market.

Companies are holding off on hiring.

Some are laying off thousands of workers.

People aren't quitting their jobs as often, so workers have less leverage.

Workers, you know, were able to demand a higher wage a few years ago when there was such a churn in the labor market.

And now that balance has shifted.

It's certainly possible to have a productive and growing economy, even if the benefits are not widely shared, says Ben Zipperer at the Economic Policy Institute.

That has been the experience of the United States, you know, over the last, you know, four or so decades.

But Zipperer says the post-pandemic economy taught us that it's also possible for companies to share those benefits with their workers.

I'm Justin Ho for Marketplace.

It all ultimately boils down to new supply, says Ben Keyes at the University of Pennsylvania's Wharton School.

Where it's easier to build more, he says.

When units are vying for tenants, he says they can get perks, negotiate with landlords, or even move at a discount.

But, he says, not all renters get that flexibility.

The real estate tool Zillow reports that its data show renting is getting more affordable, says senior economist Orfei Divungi.

He says with incomes increasing and rent growth moderating, especially compared to the big pandemic increases…