By: Ruth Mantell
May 2, 2014
Headlines this morning continue to tout an imaginary recovering economy. According to Bloomberg “Payrolls in U.S Rise Most Since 2012 and Unemployment Plunged to 6.3 Percent”. They also mention that 800,000 people quit the work force, “imaginary jobs” in April alone. We can only assume those 800,000 people were so wealthy they decided working was no longer necessary or they realized minimum-wage would not keep them from starving.
In 2013, over 70 percent of the jobs added in the U.S. were part-time minimum wage jobs. 2014 will suffer the same fate as well. We have become a nation that offers poverty level jobs to the general masses. The rich get richer, while the poor get poorer. Isn’t socialism a wonderful thing. – Gold Goliath
With recent trends in hiring show a nice pick up, a key unknown for broader U.S. growth in coming years is whether workers’ wages will pick up.
Paychecks have actually become leaner since the recession ended. Real median weekly earnings for full-time wage and salary workers during the first three months of this year were down 3% from the end of the recession, according to the government’s most recent quarterly report.
Looking at the types of jobs making up U.S. employment also provides a cause for concern. Among 13 industries that make up total U.S. private-sector employment, the five with the lowest nominal average weekly earnings represented a bit more than half of private-sector employment gains over the past year, according to Friday’s jobs report from the U.S. Labor Department. Leisure and hospitality employment showed the strongest growth among low-earnings industries, added 412,000 jobs over the year through April, representing about 17% of total private-sector job gains.
Longer-term trends show lopsided jobs growth , with lower-wage employment ramping up in recent years. During the recession, lower-wage industries made up 22% of job losses. But over the past four years, these jobs made up 44% of employment growth , according to a recently released report from the National Employment Law Project, a New York-based advocacy group.
Gold Goliath is not your typical gold dealer.