Tags: low | wage | jobs | recovery

CNNMoney: This Is Not a ‘Low-Wage Recovery’

By    |   Friday, 02 Nov 2012 08:25 AM

Even when employment reports beat expectations, critics cite the number of low-paying jobs. While industries such as food service and retail have made up significant portions of the jobs added, it is unfair to call this “a low wage recovery,” according to CNNMoney.

Take, for example, an article published by Forbes with the headline “Careers Are Dead. Welcome to Your Low-Wage, Temp Work Future.” It says mounting evidence suggests that the American labor market might never return to its pre-recession composition.

It also quotes the Economic Policy Institute as saying approximately 30 percent of American workers are expected to hold low-wage jobs, which is defined as income at or below the poverty level for a family of four, in 2020.

Editor's Note: See the Disturbing Charts: 50% Unemployment, 90% Stock Market Crash, 100% Inflation

Granted, there have been a lot of low-wage jobs added in this recovery. Restaurants and bars have accounted for 15 percent of all the jobs created in the recovery, and retailers make up another 9 percent. Restaurants and bars pay a median wage of just $9 an hour, while retailers pay a median $11 an hour.

But, there have been some seemingly strong numbers in more lucrative industries, as well.

Workers in physician and dental offices earn a median wage of $18 an hour, and those in hospitals average $23 an hour, according to Bureau of Labor Statistics data cited by CNNMoney. Healthcare alone has accounted for 17 percent of the 4 million jobs added since 2010.

Professional and technical service industries, which cover areas such as architecture and law, earn a median wage of $28 an hour and has accounted for 13 percent of jobs in the recovery, CNNMoney adds.

"When you look since the end of the recession, we've had almost 500,000 jobs created in manufacturing, and almost all of those jobs have come from the durable goods sector — primarily aerospace, motor vehicles, metals, computers and machinery," Chad Moutray, chief economist for the National Association of Manufacturers, tells CNN Money. "Those are high-wage jobs."

Durable goods manufacturing accounted for 11 percent of the jobs in the recovery and the median wage for auto assembly workers is $25 an hour.

Most of the higher-paying jobs require certain skills, even increasingly in manufacturing. Almost five years after the recession began, much has changed, including the types of workers that are needed.

Companies have repeatedly said that much of the working population has insufficient or unsuitable education or skills.

But many critics dismiss this issue.

“Given that the problem of unemployment is not the fault of the unemployed but rather insufficient demand for their labor, solutions should address that macroeconomic root cause,” Heather Boushey, a senior economist at the Center for American Progress, writes in the Atlantic.

Editor's Note: See the Disturbing Charts: 50% Unemployment, 90% Stock Market Crash, 100% Inflation

© 2017 Newsmax Finance. All rights reserved.

 
1Like our page
2Share
StreetTalk
Even when employment reports beat expectations, critics cite the number of low-paying jobs. While industries such as food service and retail have made up significant portions of the jobs added, it is unfair to call this “a low wage recovery,” according to CNNMoney.
low,wage,jobs,recovery
474
2012-25-02
Friday, 02 Nov 2012 08:25 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved