Arab Today, arab today workers the poor orphans of the us economic boom
Last Updated : GMT 00:12:40
Arab Today, arab today
Arab Today, arab today

Workers: The poor orphans of the US economic boom

Arab Today, arab today

Arab Today, arab today Workers: The poor orphans of the US economic boom

A man dressed as the Statue of Liberty
Washington - AFP

It is one of the contradictions of the US economic boom: the unemployment rate has fallen to the lowest level in six years, but workers' wages have remained almost flat.
The anomaly is troubling enough that it has sparked questions about whether the economy's rebound from the 2008-2009 recession is all that strong.
"Why is wage growth so slow?" the Federal Reserve's San Francisco branch asked in a research study Monday, calling the stubbornness of wages amid surging growth "unusual behavior", economically speaking.
In theory, the sharp fall in the jobless rate from 10 percent in October 2009 to 5.8 percent today should have sparked firm rises in the pay for the average American worker. With the supply of available workers falling, they should be in the position of forcing employers to pay more.
But the reality is that paychecks have barely risen, measured against inflation.
"In real terms, wages have been about flat, growing less than labor productivity," said Fed Chair Janet Yellen last August, and nothing has changed since then. In November the annual growth of wages was just 2.1 percent, compared to the 3.9 percent rise in 2007 before the crisis.
According to the San Francisco Fed study, some 15 percent of Americans saw no wage gain in the year to November 2014, compared to 12 percent in 2007.
Even while celebrating the fall in the jobless rate, the White House itself pointed to the problem in December.
- Longstanding challenges -
"There is more work to be done to further boost wage growth and address longer-standing challenges around both the quality of jobs and the growth of wages," it said.
Indeed, in constant dollars the average hourly salary of $20.67 is barely higher than the $19.18 of 1964.
The problem is worse for those workers on the lower ends of the pay scale. Since 2000, the 10 percent of workers on the bottom of the scale have seen their weekly paychecks shrink 3.7 percent when measured against inflation, according to a recent study by the Pew Research Center.
Those at the top of the scale of wage workers saw gains of 9.7 percent.
"For most US workers, real wages --  that is, after inflation is taken into account -- have been flat or even falling for decades," said Pew's Drew DeSilver.
The one comforting aspect is that inflation remains weak, not eating away more of workers' household purchasing power.
According to a number of experts, the contradiction of economic growth and stagnant wages exposes certain flaws in the jobs market.
"The labor market is much weaker than it appears to be just by looking at the unemployment rate," said Kelly Ross, deputy director of the policy department at the AFL-CIO labor federation.
- Waning union power -
The market is not as tight as the official jobless rate suggests. The official jobless numbers do not include the rise of people stuck in temporary jobs and those who have dropped out of the jobs market in discouragement.
The Economic Policy Institute in Washington estimates those would add another 5.7 million Americans to the official unemployed number of 9.1 million.
The rise in the power of finance and capital in the US economy and the weakness of workers' unions has also contributed to the problem, according to Ross.
"With the decline of unions, we don't have the ability to translate higher profits into higher growth in wages," he said.
A rise in the official federal minimum wage rate, stuck at the current level since 2009, could help push paychecks higher.
But the administration of President Barack Obama has faced tough opposition to such a move in the Republican-dominated Congress.
An increase "would have a limited effect given the low minimum wage rate," Ioana Marinescu, an economist at the University of Chicago, told AFP.
But a spark to wages could come from the strength of the economy and the rising optimism of employers about the future. According to Careerbuilder, the online job search site, 82 percent of businesses expect to raise wages this year, compared to 73 percent last year.
"There is always a delay between the fall in unemployment and the rise in salaries, and it appears that this period of adjustment is near its end," predicted Marinescu.

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today workers the poor orphans of the us economic boom Arab Today, arab today workers the poor orphans of the us economic boom

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today workers the poor orphans of the us economic boom Arab Today, arab today workers the poor orphans of the us economic boom

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today EasyJet, Lufthansa among seven to bid

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Fighters celebrate Raqa victory

GMT 06:07 2017 Wednesday ,18 October

Fighters celebrate Raqa victory
Arab Today, arab today Hiring not part of Alibaba pledge

GMT 11:26 2017 Wednesday ,18 October

Hiring not part of Alibaba pledge
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today British actress becomes fifth woman

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman
Arab Today, arab today Climate-disrupting volcanoes helped topple

GMT 16:00 2017 Wednesday ,18 October

Climate-disrupting volcanoes helped topple
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Dalal Abdel Aziz happy for “Seventh Neighbor”

GMT 09:31 2017 Monday ,16 October

Dalal Abdel Aziz happy for “Seventh Neighbor”
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power

GMT 12:33 2017 Friday ,13 October

Anoshka happy for reactions to her talk show

GMT 10:37 2017 Thursday ,12 October

Cara Delevingne accuses Weinstein

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 23:42 2017 Monday ,16 October

Better Marriages Make

GMT 07:02 2017 Sunday ,15 October

German minister sparks uproar

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday