Skip to comments.Chart Of The Day: Hourly Earnings, Or The Lack Thereof
Posted on 10/15/2012 5:40:30 AM PDT by Perdogg
You know the drill: please point out on this chart, which shows the yearly change in average hourly earnings for all US private workers, just where is this so-called "recovery", which an additional $6 trillion in public debt, and 5 quantitative easing episodes, have allegedly created out of thin air. For those confused, like us, we bring attention to the fact that in the past two months we have seen the smallest Y/Y increase in avg hourly earnings. Ever.
I had to do a double take of that chart, because at first I couldn’t understand how the average hourly wage could be less than in the 1990’s considering the hikes in minimum wage. But the chart shows the percent change of the average wage Still bad news for the earner, but it’s a result of supply and demand, IMO. That’s why companies can keep wages low because there are so many others willing to take the job, even at a low wage.
In our acquaintance are young people, who graduated a few years ago from colleges, and not with “squishy” degrees, and not from low caliber institutions. Some from GaTech, with engineering degrees, others from good schools with Masters in IT areas,etc...in other words, we aren’t talking liberal arts degrees.
But still a few years later, although they’ve been employed since graduation by what would be considered large, solid, employers (and I might add, compared to many of their friends, they are happy to be employed at all) their wages are really rather low, IMO. But it’s better to have a job than not have a job, and that’s just the reality of working in today’s economic situation.
In our local government, workers took an across the board pay cut about 3 years ago (from the mayor down to the lowest paid worker) and have yet to see any wage increase, and have been told not to expect one until at least 2014 (all except the police and fire unions, somehow their wages and pensions are untouchable and wages rise for them but not for others working for the municipality.)
At least, the Y-to-Y is not negative, which is what I expected.
Yeah but, “No president has faced so many challenges” as Hussein. Didn’t ya hear?