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Recovery Has Created Far More Low-Wage Jobs Than Better-Paid Ones
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A study by the National Employment Law Project shows most of the job creation in the economic recovery to 2014 in the U.S. is replacing the better paying jobs with lower paying jobs in fast food retail and similiar low paying industries.
The National Employment Law Project study of the U.S. recovery and jobs created, showing more low paying jobs created replacing better paying ones
04/27/2014
The study shows high wage industries such as accounting and legal work lost 3.6 million jobs in the recession and added 2.6 million in the last four years. In low wage indusries such as fast food and retail 2.0 million jobs were lost in the recession and 3.8 million jobs were created. Overall better paying jobs were replaced by poorer paying jobs in a weak U.S. recovery.
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Recovery Has Created Far More Low-Wage Jobs Than Better-Paid Ones
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The sharp decline in inflation adjusted wages for less skilled workers since 2000 and lack of decent paying jobs has led to many men too discouraged to look for work, and dependent on a spouse's income or government benefits. This is unlike any other post 1950's economic recovery in the U.S.
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Recovery Has Created Far More Low-Wage Jobs Than Better-Paid Ones
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About 30,000 of the 43,000 employees at Apple's U.S. operations are hourly workers. Most are in their early twenties paid about $12 an hour with health care benefits. Their is no career path for most workers and most leave after a couple of years for other work.
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A previous generation could count on good jobs in manufacturing with only a high school education. The last two decades of globalization have hit manufacturing jobs and wages in the U.S. hard and the impact is greatest on people without a college education. Other problems aggravating income and causing poverty is the increase of dropout rates from the labor force of young white American men, the effects of drug use and the lack of stable marraiges. This creates an underclass of whites in America, similiar to the underclass among minorities.
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America's Miserly Minimum Wage Needs an Upgrade
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An exceptional piece by Michael Mandel of Business Week highlighting the importance of education and healthcare sectors for development. In Michigan, one of the hardest hit states in the U.S., education and healthcare provides about 23% of jobs, compared to manufacturing with about 12% in 2009. Six years later in 2014 healthcare is an even bigger source of future jobs as shown in U.S. Bureau of Labor Statistics information. Competition in the global economy makes investments in education critical for future competitiveness. As manufacturing gets automated it provides fewer jobs per million dollars invested, and with lower manufacturing wages in developed countries to improve competitiveness. Investments in education, especially science and technology for new generations of products and demands, better preschool and better classrooms,and in community colleges with broader access to the public at lower cost, helps bring more of the population into better jobs. This is generally true for all developed economies and interestingly applies to China also with its aging population and shift to higher technologies for its products. In countries like India poor resource allocation to healthcare and education means immediate and high dividends from such investments.
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Tackling middle class poverty in the U.S.- causes and strategies
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Shrinking incomes, low job growth, growth in temporary jobs, offshoring of jobs, are part of a trend since 1989. This is compounded by acceleration of developments during the last decade of low savings and paltry return on savings, effects on net worth of the financial crisis of 2008 through job losses, lost income, foreclosures, high cost of health care and college tution for children. The combination is creating a new kind of middle class poverty in the U.S. The Obama administration has pushed for college education even as it is becoming less affordable and neglected jobs training. The push to raise the minimum wage helps the poor but does not do as much for the middle class.
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The University of Texas professor on the American middle class, the supercommittee on deficit reduction and the minimum wage.
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8 States to Raise Minimum Wage
New York Times 12/23/2011
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In Washington State, Home of Highest Minimum Wage, a City Aims Higher
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New York Times 12/04/2013
The right level for the minimum wage in the U.S.- $10, $12 or $15?
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Recovery Has Created Far More Low-Wage Jobs Than Better-Paid Ones
New York Times 04/27/2014
Swiss to Vote on $25-an-Hour Minimum Wage
Wall Street Journal 05/16/2014
Michigan Becomes Seventh State This Year to Raise Minimum Wage
Wall Street Journal 05/29/2014
Low wages for workers at fast-food retail outlets
12/04/2013
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Low bank wages costing the public millions, report says - The Washington Post
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$15 Wage in Fast Food Stirs Debate on Effects
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Recovery Has Created Far More Low-Wage Jobs Than Better-Paid Ones
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