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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsFor most workers, real wages have barely budged for decades
Following the better-than-expected September jobs report, several economic analyses have pointed out the continuing lack of meaningful wage growth, even as tens of thousands of people head back to work. Economic theory, after all, predicts that as labor markets tighten, employers will offer higher wages to entice workers their way.
But a look at five decades worth of government wage data suggests that the better question might be, why should now be any different? For most U.S. workers, real wages that is, after inflation is taken into account have been flat or even falling for decades, regardless of whether the economy has been adding or subtracting jobs.
Cash money isnt the only way workers are compensated, of course health insurance, retirement-account contributions, education and transit subsidies and other benefits all can be part of the package. But wages and salaries are the biggest (about 70%, according to the Bureau of Labor Statistics) and most visible component of employee compensation.
According to the BLS, the average hourly wage for non-management private-sector workers last month was $20.67, unchanged from August and 2.3% above the average wage a year earlier. Thats not much, especially when compared with the pre-Great Recession years of 2006 and 2007, when the average hourly wage often increased by around 4% year-over-year. (During the high-inflation years of the 1970s and early 1980s, average wages commonly jumped 8%, 9% or even more year-over-year.)
http://www.pewresearch.org/fact-tank/2014/10/09/for-most-workers-real-wages-have-barely-budged-for-decades/
But a look at five decades worth of government wage data suggests that the better question might be, why should now be any different? For most U.S. workers, real wages that is, after inflation is taken into account have been flat or even falling for decades, regardless of whether the economy has been adding or subtracting jobs.
Cash money isnt the only way workers are compensated, of course health insurance, retirement-account contributions, education and transit subsidies and other benefits all can be part of the package. But wages and salaries are the biggest (about 70%, according to the Bureau of Labor Statistics) and most visible component of employee compensation.
According to the BLS, the average hourly wage for non-management private-sector workers last month was $20.67, unchanged from August and 2.3% above the average wage a year earlier. Thats not much, especially when compared with the pre-Great Recession years of 2006 and 2007, when the average hourly wage often increased by around 4% year-over-year. (During the high-inflation years of the 1970s and early 1980s, average wages commonly jumped 8%, 9% or even more year-over-year.)
http://www.pewresearch.org/fact-tank/2014/10/09/for-most-workers-real-wages-have-barely-budged-for-decades/
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For most workers, real wages have barely budged for decades (Original Post)
FreakinDJ
May 2016
OP
Fresh_Start
(11,330 posts)1. If it were a total compensation view, I think it would be even worse
benefits are worse
retirement plans are almost non-existent
employers are making employees pay a higher percentage of health insurance
FreakinDJ
(17,644 posts)2. A little too much reality
Stock Market is so rigged must benefit plans will soon be going under.
dembotoz
(16,799 posts)3. which is why i fear a trump hrc fight
those who have been screwed long term are supposed to back clinton??????
i do not see that
KG
(28,751 posts)5. i'm losing ground. I'm basically making same wage as 2002, even tho my abilities continue to rise.
Omaha Steve
(99,582 posts)6. Yep
K&R!
OS