Majority of New Jobs Pay Low Wages

[dmcowen674]

9-1-2012

http://finance.yahoo.com/news/majority-jobs-pay-low-wages-140207221.html

Majority of New Jobs Pay Low Wages



While a majority of jobs lost during the downturn were in the middle range of wages, a majority of those added during the recovery have been low paying, according to a new report from the National Employment Law Project.



The disappearance of midwage, midskill jobs is part of a longer-term trend that some refer to as a hollowing out of the work force


“The overarching message here is we don’t just have a jobs deficit; we have a ‘good jobs’ deficit”

Lower-wage occupations, with median hourly wages of $7.69 to $13.83, accounted for 21 percent of job losses during the retraction. Since employment started expanding, they have accounted for 58 percent of all job growth.

 

[dmcowen674]

Despite four years of Obama rule, the Republican plan to get American workers down to $2 hr is very well on track.

Only $5 hr to go.

 

[Fenixgoon]

Despite four years of Obama rule, the Republican/Democrat plan to get American workers down to $2 hr is very well on track.

Only $5 hr to go.

ftfy.

who do you think enacted huge free trade agreements in the 90's?

 

[dmcowen674]

ftfy.

who do you think enacted huge free trade agreements in the 90's?

It was set up by Republicans though.

True that after all this time Congress has had more than enough opportunity to reverse the huge mistake.

The problem is it is only a mistake for the American people not the Corporations or the Government.

The U.S. is the United Corporations of America now they don't plan on breaking themselves up anytime soon.

 

[nobodyknows]

9-1-2012

http://finance.yahoo.com/news/majority-jobs-pay-low-wages-140207221.html

Majority of New Jobs Pay Low Wages



While a majority of jobs lost during the downturn were in the middle range of wages, a majority of those added during the recovery have been low paying, according to a new report from the National Employment Law Project.



The disappearance of midwage, midskill jobs is part of a longer-term trend that some refer to as a hollowing out of the work force


“The overarching message here is we don’t just have a jobs deficit; we have a ‘good jobs’ deficit”

Lower-wage occupations, with median hourly wages of $7.69 to $13.83, accounted for 21 percent of job losses during the retraction. Since employment started expanding, they have accounted for 58 percent of all job growth.

Let in some more illegal aliens. That will fix the economy!!

 

[postmortemIA]

It was set up by Republicans though.

True that after all this time Congress has had more than enough opportunity to reverse the huge mistake.

The problem is it is only a mistake for the American people not the Corporations or the Government.

The U.S. is the United Corporations of America now they don't plan on breaking themselves up anytime soon.

Yes, things are working well in US only for the large corps. They make more and more, pay less and less in taxes and employee salaries.

 

[Matt1970]

Despite four years of Obama rule, the Republican plan to get American workers down to $2 hr is very well on track.

Only $5 hr to go.

I am sorry, I missed the news on it but what Bill was it that the Republicans passed to mandate a pay reduction?

 

[Smoblikat]

I KNOW!!!!!

lets let in some illegals who will work for 2$/hr happily while paying no taxes. Then lets piss off the middle east and buy all our oil from them, instead of our own supplies right here. Thatll solve all of our job problems.

Gee willikers, obama sure is a swell guy. he has MY vote.

 

[EagleKeeper]

Despite four years of Obama rule, the Republican plan to get American workers down to $2 hr is very well on track.

Only $5 hr to go.

So these are the types of jobs Obama is claiming credit for to grow the economy

 

[dmcowen674]

So these are the types of jobs Obama is claiming credit for to grow the economy

Pretty anemic but better than the complete tear down of jobs in America by the Bush Regime and what we would go back to under Romney/Ryan rule.

 

[manimal]

Realistically this trend has been going on since 80 and 90s. Its just become accelerated because of market conditions..

 

[Doppel]

Realistically this trend has been going on since 80 and 90s. Its just become accelerated because of market conditions..

I prefer the knee jerk partisan explanation given by OP, it's far more interesting/entertaining, even if completely incorrect, par excellence for him.

 

[3chordcharlie]

I am sorry, I missed the news on it but what Bill was it that the Republicans passed to mandate a pay reduction?

OP is wrong in that this is not a Republican plot.

What mechanism do you figure has eroded real wages for the bottom 90% over the last decades?

 

[MovingTarget]

Realistically this trend has been going on since 80 and 90s. Its just become accelerated because of market conditions..

Its not surprising, really. The financialization and de-industrialization of our economy continues. The middle and lower classes don't do very well in an economy dominated by the influence of big finance.

 

[Matt1970]

Its not surprising, really. The financialization and de-industrialization of our economy continues. The middle and lower classes don't do very well in an economy dominated by the influence of big finance.

Specifics, or we don't buy it. :thumbsdown:

That goes both ways pal.

 

[MovingTarget]

That goes both ways pal.

You were referring to specific statements made by Obama in the other thread, which was about specific statements made by Ryan. Specific statements should have quotes that accompany them. You were vague about specific verifiable statements, and I asked you to back it up with the relevant details. The bar is much higher when you are talking about specific statements from specific people as opposed to the interpretation of macroeconomic data and statistics. The latter is much more open to interpretation and is less concrete.

But I'll bite. Look at the percentage of our relative economic output generated by financial institutions over time. Then, you need to look at the employment by the industrial sector of our economy, which has fallen dramatically since the 1980s. People's incomes have remained stagnant or have fallen since then, as has been pointed out by many a source on these forums. As the OPs article has stated, the jobs that have replaced those lost during recessions since then haven't been of the same caliber. We've seen that time and again.

 

[Hayabusa Rider]

When stupid leads stupid, stupid is what you get.

 

[boomerang]

 

[JKing106]

I am sorry, I missed the news on it but what Bill was it that the Republicans passed to mandate a pay reduction?

You haven't figured out that Bill Clinton was a moderate, Eisenhower era Republican, just like Barack Obama? That little "D" or "R" at the end of their names don't mean shit.

 

[manimal]

I prefer the knee jerk partisan explanation given by OP, it's far more interesting/entertaining, even if completely incorrect, par excellence for him.

its time we step away from this bourgeous table and say "no more jello for me mom!"

The reality is somewhere not in the middle but on the opponents side of the field if we use a football analogy. Classically one party was the party of business and business has outsourced the jobs. 20 years ago the conservative party would have led on the issue instead of letting the tail wag the dog like they have since the 80s. Now with finance the way it is they have to.

Lets all start by saying the service based economy we are in is not sustainable if we want aggregate demand to recover broadly. We need plans and specific IDEAS on paper and actually described in detail and worked up like they did in the old days when we used to actually pass real legislation.

Its not surprising, really. The financialization and de-industrialization of our economy continues. The middle and lower classes don't do very well in an economy dominated by the influence of big finance.

Aggregate demand is down because people have less money to spend. With the lower economic buying power consumers are forced to buy on price further exacerbating the price wars which only China can win. We can argue about what brought us here or we can find a solution. What are the solutions both parties have offered to create jobs? ACTUAL solutions.

While there is no such thing as fair trade the US could at least remove the incentives in place that created the market conditions we are in.

 

[mshan]

"An analysis of labor market data suggests that there are no structural changes that can explain movements in unemployment rates over recent years," the authors write. "Neither industrial nor demographic shifts nor a mismatch of skills with job vacancies is behind the increased rates of unemployment."

The paper states "some industries, like construction, manufacturing, and retailing, experienced disproportionately large increases in unemployment." But at the same time, "the patterns observed on the way up were mirrored on the way down," and "those industries that contributed much to the increase in unemployment between 2007 and 2009 were the same that accounted for decreases in unemployment since 2009," Mr. Lazear and Mr. Spletzer wrote."

...


"Secondly, Mr. Lazear and Mr. Spletzer write that as nasty as the unemployment rate has been, it hasn't charted new territory. In the early 1980s recession, the economists note, unemployment peaked at a higher level than the most recent recession.

Meanwhile, some of the trends some have used to support the structural argument--the decline of factory jobs, changing labor participation rates, and the benefits education offer to wage growth--have been in play for a long time, well before the current economic troubles started, the authors write.

The authors discount the idea that the long duration of unemployment seen lately is a sign of structural changes. They tied the extended duration of unemployment to depth of the downturn, saying "the current recession does not appear fundamentally different from prior ones, except that it is worse."


http://news.morningstar.com/all/dow...-unemployment-is-basic-economic-weakness.aspx

Haven't dug deeply into this topic, but does seem like analogy of home price sales over last few years might apply:


Average home sale prices might have been skewed down previously because of great number of foreclosures and short sales, but now that news flow about housing recovery is widespread and mortgage rates so low, average / median home sale price is now being pushed up because of higher end home sales now (e. g. IIRC, Morningstar economist Bob Johnson said home sales are up 10% year over year in terms of number, but 20% on an actual dollar amount):

"Stipp: So, what factors are behind that acceleration? What should we be looking for?

Johnson: There are number of things that are helping us here; some of them are kind of obscure. I suppose the biggest one that we've always talked about is housing. Now existing home sales are up in the neighborhood of 10% year-over-year, and if you look at it in terms of dollar values of homes sold, we're actually up 20% year-over-year, which is a pretty astounding number. That is, people are buying more expensive homes, and that means more brokerage commissions, that means they are likely to spend more on furniture, more on hooking up their cable, and the services type of things.

So, the existing home sales are driving things up. And again, it's up nicely. There is not a heck of a lot of inventories, so we're only up 10%. This morning the pending home sales [report] said there is an acute shortage of homes in the California market, for example, in the low price points, especially.

And the new homes--that is, homes you are starting--are up 25% year-over-year, and it takes awhile from when you pour the foundation to when that really starts absorbing all the labor and requires the employment when you do all the drywall and the final electricity and stuff.

So, we've been in fairly good territory in starts for a few months now, and I expect that to start to creep into the numbers, too, and help us dramatically in the second half."


http://www.morningstar.com/cover/videocenter.aspx?id=566277

 

[MovingTarget]

Were it not for my thicker skin, my experience in riding out said hurricanes on the Gulf Coast would probably make me be offended at that cartoon.

If you want it to be accurate, replace "Obamanomics" with "Reaganomics". :thumbsup:

 

[DucatiMonster696]

its time we step away from this bourgeous table and say "no more jello for me mom!"

The reality is somewhere not in the middle but on the opponents side of the field if we use a football analogy. Classically one party was the party of business and business has outsourced the jobs. 20 years ago the conservative party would have led on the issue instead of letting the tail wag the dog like they have since the 80s. Now with finance the way it is they have to.

Lets all start by saying the service based economy we are in is not sustainable if we want aggregate demand to recover broadly. We need plans and specific IDEAS on paper and actually described in detail and worked up like they did in the old days when we used to actually pass real legislation.




Aggregate demand is down because people have less money to spend. With the lower economic buying power consumers are forced to buy on price further exacerbating the price wars which only China can win. We can argue about what brought us here or we can find a solution. What are the solutions both parties have offered to create jobs? ACTUAL solutions.

While there is no such thing as fair trade the US could at least remove the incentives in place that created the market conditions we are in.

Completely disagree. The economy is awash with money. QE, bailouts, etc, the government and the federal reserve banking system has been working their asses off in order to keep the printing press working overtime. We've even sent bail out money to Europe in a false hope that this would save them form their own debt woes. All of this has done is to create inflation which has eroded the purchasing power of the average American. On top of that we have been vainly keeping interest rates at all time lows in hopes that somehow this would spur growth but it hasn't because again our money is increasingly loosing it value with every gimmicky move by the fed and our government used to prop up our debt and we are finding it harder and harder to keep inflating false economic bubbles of growth via easy credit and massive government spending.

So it doesn't matter if you have a job or not because when our leaders erode the value of our currency to keep the system going we are going to kill demand for goods and services which will only grow more expensive due to inflation as government and the fed keep dumping unfathomable amounts of borrowed and devalued currency into the system in hopes that we somehow get positive results of which only move further and further away from our grasp as we dump more devalue money out into the economy.

 

[Sonikku]

You people call it a loss for America. I call it keeping inflation down.