Career Calling

December 3, 2011

Total Income from Wages Falls

Filed under: Job Market Trends — claycerny @ 1:10 am
Tags: , ,

According to Huffington Post, the income of workers has fallen from 65% before 2000 to 57.1% today.  Where did the income go?  The article suggests that increased productivity means that income has not been lost, but transferred from wages to company profits.  The report says that median income has fallen more during the recovery than the recession.  I am not an economist, but the common sense reason for that seems to be consistent layoffs (especially in the public sector) and freezes/cuts in employees salary. 

The media focuses on the unemployment rate, which is an important measure.  However, it affects a small part of the workforce.  Wage loss has impacted workers who have kept their jobs and those who have taken jobs with lower pay.  In the long run, wage loss could be a much bigger problem than unemployment.

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