Skip to comments.Wages drop, only 5th time in 33 years
Posted on 07/03/2012 3:06:28 AM PDT by gusopol3
Unemployment ebbs and flows, but one measure of the nation's economic health, average weekly wages, rarely dips.
Until now. In the latest demonstration of the struggling economy that threatens President Obama's reelection, average weekly wages fell in 2011, one of only five declines since the category was created in 1978 by the Bureau of Labor Statistics.
In a just-released review of employment in the nation's largest 322 counties, BLS found that weekly wages dropped over the year by 1.7 percent to $955 in the fourth quarter of 2011 from a high of $971 in the fourth quarter of 2010.
That means the $50,000-a-year mark, busted in the fourth quarter of 2010, has dropped back to an average yearly salary of $49,660. And the wage depression was widespread: 282 major counties suffered wage declines; just 36 saw increases.
(Excerpt) Read more at washingtonexaminer.com ...
It’s the weirdest dang Recovery I’ve ever seen!
Sure wages have dropped. That’s why the elite’s refuse to secure our borders.
I expect an unexpected and miraculous recovery just before the election.
Santa comes Christmas Eve and that’s still after the election.
So true. This guy’s record is such that were he any other person, republican or democrat, the total failure of his policies and programs would be front and center in the news every day. Horrific.
Obama brings the gifts. Santa brings the downward revisions.
Can you imagine the font size on the headlines if this were in 2004, when Bush ran for re-election ? And here I stumbled on it in the back pages of a conservative web paper a day later.
Not Socialist.. but we’re all broke now. O what’s his face makes Carter look...
ok there is no where to go with that.
Escept, I bet Carter is glad to be the second worst President in modern History.
But the government workers got their raises and bonuses, no doubt!
I agree with your premise that Obama would be convicted on the evidence.
The problem is that the MSM is heavily invested in Baraq, and either ignores or distorts this type of data.
But yes, by any objective measure, the Baraqqi Depression grinds on without mercy - except of course in Wash DC and NoVa.
From 1950 to 1970, the average earnings of male workers increased by about 25 percent each decade. And these gains were not concentrated among some lucky few. Rather, earnings rose for most workers, and almost every prime-aged male (ages 25-64) worked.
"Over the past 40 years, a period in which U.S. GDP per capita more than doubled after adjusting for inflation, the annual earnings of the median prime-aged male has actually fallen by 28 percent. Indeed, males at the middle of the wage distribution now earn about the same as their counterparts in the 1950s! This decline reflects both stagnant wages for men on the job, and the fact that, compared with 1969, three times as many men of working age dont work at all."
Yeah the lib plan is really working well
The early Procter & Gamble business demonstrated something true in business, that a successful business rewards its workers with increasing wages. Why? Because when you’ve got a good team, you increase your business by increasing that team. It is as solid and sound a principle as any in the realm of leadership. Morale is a critical element in leadership.
Now, we have a situation in which wages are declining.
That is a reasonable thing if the business is facing a desperate future. All should share in making the business that gives them a job as sound as sound can be.
It means, though, that there are rough times ahead. Roberts just enabled Obama, gave him a major victory with both Arizona and ObamaCare, and it appears that a depression is very real. Wages and values DECLINE in a depression.
I don’t know if Romney will win; I don’t really care. I’m not one of his supporters. He is simply a politician version of a GOP-E Scotus justice. He’ll turn on us whenever it’s to his benefit. They all do.
So, quit trusting in parties. Find something/someone bigger than that to lean on. It is the only way to peace and stability in life.
I respect that, but it’s hard for one person to compare his ability to participate as a consumer in the economy from decade to decade, let alone over several decades. But a single voter can compare his progress from year to year or even a few years, which was why Reagan’s questuion , “are you better off than you were 4 years “ago worked. The answer for Obama is emphatically no.
‘TAXATION WITH MISREPRESENTATION” a great tagline, bumper sticker etc.
I’d always understood it was Henry Ford who wanted his workers to make enough money to buy the cars they made. Every coin still has the answer stamped on it in this great country, “In God We Trust.” Without that unifying principle, there are indeed rough times ahead.
Considering how well the original worked, it has to be a winner.
In God we Trust.
We are bringing in 1.2 million legal immigrants every year. 25% of the adults lack even a high school diploma. It expains partially why our wages are declining. We are bringing in 125,000 legal foreign workers a month right now. This includes permanent immigrants and those on temporary work visas. And now Obama is giving an amnesty to over a million illegal aliens up to the age of 30.
I am talking politics, but I do recognize and lament the long term trend . Personally, I attribute it to demographic inversion. Those guys back in the fifties knew they had 4 kids to raise at home. From my personal experience, there is no greater motivator. To the extent our society moves away from that, it’s going to be increasingly difficult for politics to fix. Likely, the more they try , the worse it will get.
If you take the time to read the article, you will learn something. Our middle class jobs are disappearing, most of them going overseas where labor is cheaper and just as qualified. Wages are being depressed because of an oversupply of labor. Education will be key to whatever success one has in the future and it will have to be specialized.
And the demographics of this country are changing rapidly. 87 percent of the 1.2 million legal immigrants entering annually are minorities as defined by the U.S. Government and almost all of the illegal aliens are minorities. By 2019 half of the children 18 and under in the U.S. will be classified as minorities and by 2042, half of the residents of this country will be minorities. Generally, immigrants and minorities vote predominantly for the Democrat Party. Hence, Democrats view immigration as a never-ending source of voters that will make them the permanent majority party.
What makes this disturbing is that the out of wedlock birth rates for the fastest growing part of our population--blacks and Hispanics--is 71% and 50% respectively. And the school drop out rate is over 50% for Hispanics and about the same for blacks. This is the pathology for failure in our society and greater dependence upon government. They represent our future workforce, which will make it even more difficult for us to compete in the global economy.
I don't care who the next President is. We are in serious trouble and it will be very difficult to turn around these trends, especially since we are bankrupt.
Thanks, I’ll read it.
Re: “Wages Drop”
Yeah, I guess so.
11 million illegal immigrants - most of them low skill.
1 million new citizens each year - most of them low skill.
500,000 Green Cards and work visas each year - many of them low skill - ALL of them competing against home grown Americans.
I believe your number may not include workers who leave the USA workforce when their visas expire.
Many people at Free Republic support high levels of immigration - but not me.
They often challenge my numbers as being too high.
So, I use the most conservative numbers I can find.
There are entire swaths of the economy in great need of skilled workers, I’m astonished that they can write this report with no reference to that simple fact.http://www.careersinwelding.com/salary_information.php Weber’s original insight into the Protestant work ethic was that it stood in contradistinction to the traditional economic performance of individuals, where , once a comfortable level of creature comfort was attained, the marginal utility of work dropped off sharply. I have only very superficial understanding of that, but it fits the data as far as I’m concerned. Maybe it’s just too hard and dirty to be a welder? When you know you’re not going to starve, plenty of women are around who’ll give sex for not much other than the mutual pleasure and there’s plenty of entertainment to while away the hours?
Job Growth. The finding that new immigration was higher in the 10 years prior to 2010 than in the 10 years prior to 2000 is important because the two decades were very different in terms of job growth. There were two significant recessions during the first decade of this century plus the September 11 terrorist attacks. As Figure 3 shows, during the decade there was actually a net loss of about 400,000 jobs according to the Bureau of Labor Statistics (BLS) survey of businesses. In contrast, the BLS reports a net increase in jobs of about 22 million between 1990 and 2000.
If we had a real shortage of workers, wages would be increasing, not decreasing. I don't care if they are welders or garbagemen. US businesses want the flow of cheap, exploitable labor to continue so they can increase profits and socialize the costs.
Got the Bible out after church on Sunday...reading about judges decisions. Where would Christians be if the “judge” had told Jesus: “you just go on home, they’ve got nothing on you”?
Learned along time ago my prayers don’t always get answered in the way and in the time I’ve asked. God sometimes has a better plan. w
What I'm saying is that work visas are temporary.
Each month a certain number of visas also EXPIRE - those workers leave the USA.
Just counting NEW visas does not give us an accurate number.
You must also subtract those who leave.
There are two basic problems when trying to do immigration math.
(1) Quite often people who are eligible to stay in the USA voluntarily leave.
(2) Quite often people in one category move to another category. For instance, a man arrives here with an H-1b Visa, then moves on to a Green Card in a few years, then moves on to Citizenship a few years after that.
Trying to keep the math completely honest is REALLY hard, which is why I always reach for the most conservative numbers.
Frankly, even the conservative numbers are awful!
We need some strategery
Nothing, that's what he's going to do.
They even pay themselves bonuses from the money they extort from taxpayers.
It's pretty rich seeing people post that all we need to do to starve the federal beast is vote in more Republicans.
They haven't done a goddamned thing to shrink government when they were in control.
That's a fact.
Yeah, patronage has been a problem with government forever and now with early retirement and taxpayer funded pensions and the incestuous campaign contributions, it’s on steroids.
Why, one has stopped by to lecture you already! lol
Fine, but still, no mention of drugs , sex and rock and roll and general cultural decline as a factor in Americans failing to achieve? You only miss it because you want to. BTW, I don’t see your immigration emphasis in the article either. They’re mainly talking about lack of Head Start programs and stuff, and we know how successful that program is.Are they pretending or do they really not know?
That guy is dead, and now you're working to support his 4 retired Baby Boomers, who loaded the dice along the way...
Agree. Let's take a look at the data:
The flows of foreign workers come in two different, but related, channels. There is the larger flow of more or less temporary workers in the nonimmigrant stream, and then there is the granting to a smaller group the status of permanent resident alien (PRA) held by people with green cards. While most nonimmigrant arrivals are, in fact, arrivals from abroad, the grants of PRA status are usually, but not always, to people who have been in this country for years as nonimmigrants.
Nonimmigrants. There are multitudinous visa categories that can be used by skilled foreign workers, but we are going to concentrate on only five of them: F-1, J-1, L-1, H-1B, and O-1 statuses; all of the people in the last four of these visa classes can work full-time legally in the United States, and some of the F-1s can as well. There are many other classes of nonimmigrant workers,5 but these five contain most of the skilled ones.
Of the five categories, only the H-1B workers are admitted against numerical ceilings; there are no numerical limits for the others. To provide one very rough measure of the size of the flows of these five groups, we use the number of admissions6 in FY 2009. Those counted are only the workers or worker-students, and none of their dependents. All numbers are rounded to the nearest thousand.
Nonimmigrant Visa Class
FY 09 Admissions
F-1 (students) -- 895,000
J-1 (exchange visitors) -- 413,000
H-1B (tech workers) -- 339,000
L-1 (intracompany transfers) -- 333,000
O-1 (extraordinary ability) -- 46,000
Total admissions -- 2,026,000
Most of the F-1s and many of the J-1s are not available for commercial work, being occupied at academic institutions. Some of the J-1s, particularly the youngsters in the summer work travel program, are not skilled workers. Virtually all of the H-1Bs and L-1s are college graduate workers or managers; the O-1 visa holders include people prominent in science, business, academia, and athletics, but not in the arts or entertainment.
An F-1 worker who has completed a degree has 29 months afterward during which he or she can work, provided the graduate is in one of a long list of academic specialties;7 it is during this period that the alien graduates employer receives a bonus because the employer need not pay payroll taxes.
The O-1 category is interesting, in that a person whose talents are recognized can nominate himself or herself for a visa, but there must be some indication that an agent or an employer will be involved in the aliens trip to the United States. The requirements for extraordinary abilities seem to be rather demanding. USCIS is in the throes of streamlining the application process to make it less burdensome on the applicant. The initial visa can be as long as three years and it can be extended if USCIS agrees.
What is described above is a menu written in bureaucratese about some of the routes a talented, or at least an educated, alien can use to get into the United States and get a job. These routes are taken frequently by both the best and the brightest and by much larger numbers of less distinguished workers.
The size of these nonimmigrant worker populations a subject never raised by the mass migration advocates or government officials is remarkable. By population, I mean the number of people with these visas in the country, and in the labor market, at any specific point of time, known as the stock. (This is a different concept from the admission figures noted above, which measure the flow, to use the demographers term.)
The two largest of these populations have been estimated as follows:
H-1B -- 650,000
L-1 -- 350,000
Total -- 1,000,00
The other groupings (F-1/OPT, J-1, and O-1) may only add another 100,000 or so to the nonimmigrant skilled worker population, perhaps cancelling out the fact that some of the H-1Bs are teachers and a few are fashion models, and some of the L-1s are managers.
The major point is that there is a thunderous number of foreign workers with at least bachelors degree in the nation as nonimmigrants at any given time, most with tech backgrounds.
And they keep coming.
Lets look at the annual additions of skilled nonimmigrant workers to our work force, as distinct from the less helpful admissions numbers shown above. What the open-borders types want to do is to enlarge the number of annual additions to the skilled work force by changing the migration rules. Lets look at how many additions we are getting each year, anyway, under current laws additions, I should note, to an already ample stock of such workers.
My estimate of these annual additions, under current law, averages at least 200,000 a year. There are three main components of this estimate: additional H-1B workers, additional L-1 workers, and all other nonimmigrant workers (F-1 with OPT, J-1, and O-1). Since the 85,000 ceilings for H-1B applications are routinely filled each year though we are not there yet with the next fiscal year and since there are no limits to H-1Bs hired by academic institutions (lets call that 15,000 a year for convenience) we receive an additional 100,000 H-1B workers annually.
Professor Hira has estimated annual additions of L-1s at 75,000 a year. And I suspect that the other categories add another 25,000 each year.
And these numbers don't include this program: Cheap Labor as Cultural Exchange: The $100 Million Summer Work Travel Industry
The exchange structure was established in 1961, when Congress passed the Mutual Education and Cultural Exchange Act. The legislation sought to increase mutual understanding between the people of the United States and the people of other countries.11
Propelled by successive administrations, SWT grew dramatically. Its ranks of young participants swelled from about 20,000 in 1996, to 56,000 in 2000, and 88,500 in 2005. Participation peaked in 2008 at nearly 153,000 before the recession caused it to sag to 132,000 in 2010 and 103,000 in 2011.
If anything, I believe these numbers are understated once you add in illegal aliens and permanent immigrants. We are bringing in huge numbers of both skilled and unskilled labor--more than we can absorb. This drives down wages and the labor participation rate. Americans without a high school diploma can't compete with the immigrants. And skiiled immigrants are hurting US college graduates. Our immigration policy is disconnected from our labor needs.
Demography is destiny. The composition of our population has changed significantly since 1970 when non-Hispanic whites comprised 89% of the population. Today they are 66% and by 2042, they will be 50 percent. Our aging population has also changed the composition of the workforce. Our cultural decline is a function of demography and a loss of national identity. We are being Balkanized along race, ethnic, and cultural lines under the banner of multiculturalism and diversity.
By 2050, the minority population -- everyone except for non-Hispanic, single-race whites -- is projected to be 235.7 million out of a total U.S. population of 439 million. The nation is projected to reach the 400 million population milestone in 2039.
The non-Hispanic, single-race white population is projected to be only slightly larger in 2050 (203.3 million) than in 2008 (199.8 million). In fact, this group is projected to lose population in the 2030s and 2040s and comprise 46 percent of the total population in 2050, down from 66 percent in 2008.
Meanwhile, the Hispanic population is projected to nearly triple, from 46.7 million to 132.8 million during the 2008-2050 period. Its share of the nation's total population is projected to double, from 15 percent to 30 percent. Thus, nearly one in three U.S. residents would be Hispanic.
The black population is projected to increase from 41.1 million, or 14 percent of the population in 2008, to 65.7 million, or 15 percent in 2050.
The Asian population is projected to climb from 15.5 million to 40.6 million. Its share of the nation's population is expected to rise from 5.1 percent to 9.2 percent.
The working-age population is projected to become more than 50 percent minority in 2039 and be 55 percent minority in 2050 (up from 34 percent in 2008). Also in 2050, it is projected to be more than 30 percent Hispanic (up from 15 percent in 2008), 15 percent black (up from 13 percent in 2008) and 9.6 percent Asian (up from 5.3 percent in 2008).
Again, Hispanics and blacks will comprise about 45% of the population by 2050. If their out of wedlock and school drop out rates continue to remain high, this does not bode well for the quality of our workforce.
BTW, I dont see your immigration emphasis in the article either.
The article is from Brookings, a left leaning think tank. They try to exclude immigration from such studies, but the reality is that it is the elephant in the room. I work in a grassroots immigration group that lobbies on the Hill and in Richmond. We encounter this denial all of the time, but the statistics don't lie. It is destroying this country and it may be too late to reverse.
Motivated by parochial self-interest, the pro-mass immigration, open borders, amnesty advocates have formed a powerful coalition including the U.S. Chamber of Commerce, labor union leaders, the Catholic Church, ethnic and racial groups, moderate Republicans, and the Democrat Party. The common thread that unites these groups is power, money, and the prospect of increased constituencies, even at the expense of our long-term national interests and survival.
Our country is being destroyed right in front of us. When they write this history of this once great nation, the historians will point to the 1965 Immigration Act as the reason why.
Is this an average or a media salary?
Bipartisan constituents with government incomes are sucking private sector producers dry.
Clearly, your expertise on this subject is much greater than mine.
My own favorite solution is an income based visa/immigration policy.
If you can get a contractual job offer for $150,000 per year, here’s your visa.
If you can stay above $150,000 for three years, here are your citizenship papers.
Our current policy is not just economically insane, it’s political suicide for American Conservatives.
America has added roughly 10 million new citizens in the last 10 years.
Although their voter turnout is quite low, they vote 75%-80% for the Democrat Party.
While waiting, they got to talking with a man who used to live in Colorado Springs. He said he was an electrician and had his own business there. Did OK and hired real Americans to work for him. Over time, he was noticing he was losing jobs because his competitors were using illegals and able to pay them under the table less than minimum wage which enabled them to charge less for services. He couldn't compete anymore and closed up shop.
I would bet this is happening all over the country.