Stagnant wage growth seems like it would be a good thing for businesses, but the opposite is true. When wage growth is stagnant businesses find it difficult to attract and retain talented workers. That makes it difficult for the businesses to perform well. In addition, the financial stress caused by stagnant wages can lower the productivity of workers. Taken together this can have a serious impact on business growth. That’s why wage and income growth statistics are so important for markets. When wages aren’t growing traders can view it as a negative for economic growth overall, and for the future growth of businesses and stock prices.