Wages are not depressed. Per-worker wages have increased in both the public and private sector:
Sum[wages] / GDP is down because employers are finding ways of getting more output with fewer employees. I.e., Sum[wages] = (average wages) x (# of workers) is down because # of workers has decreased, not because wages have.
If wages had decreased, we would not have had a recession at all (according to Keynesian economics).