This article points to research done by the National Employment Law Project that indicates that a greater number of jobs in middle- and high-paying industries were lost than low-wage jobs during the recession, but the greatest job growth in the economic recovery has happened in low-wage industries. In particular, fast food restaurants and strip malls have been hiring at a much higher rate than law firms and health care industries.
With a shrinking middle class that has lost its traditional manufacturing base, economists are worried about a greater stratification of classes and higher income inequality. Some recommend raising the minimum wage, a policy that has been opposed by many Republicans and business owners. Others suggest a need to vamp other social safety programs in order to support low-wage workers and reduce income inequality. Others are wondering what the middle class will look like if jobs continue to be created in low-wage industries and if high-wage industries catch up in job creation.
http://www.nytimes.com/2014/04/28/business/economy/recovery-has-created-far-more-low-wage-jobs-than-better-paid-ones.html?hp&_r=0
With a shrinking middle class that has lost its traditional manufacturing base, economists are worried about a greater stratification of classes and higher income inequality. Some recommend raising the minimum wage, a policy that has been opposed by many Republicans and business owners. Others suggest a need to vamp other social safety programs in order to support low-wage workers and reduce income inequality. Others are wondering what the middle class will look like if jobs continue to be created in low-wage industries and if high-wage industries catch up in job creation.
http://www.nytimes.com/2014/04/28/business/economy/recovery-has-created-far-more-low-wage-jobs-than-better-paid-ones.html?hp&_r=0
3 comments:
I was reading an article long time ago, how businesses were shifting from hiring full time to part time so they don't have to pay for workers' health care. Although main goal now is to increase jobs, it seems that 'real jobs' are not supported by any entities.
If jobs are expanding so much in the low-wage industries, it really doesn't look that promising for the job market. Hopefully, educated and skilled workers do not have to move to work at lower paying jobs because they are the only ones available, but it seems likely that something like that could or is already happening.
This is certainly a concern and something that is not addressed enough. While minimum wage increase could have an impact on the decrease of inequality, economists also suggest that raising minimum wage raises unemployment. Thus, we can find ourselves in a trap. I do not know a good solution for this problem, except for encouraging more people attend colleges and then seek skilled jobs.
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