A U.S. Recovery Built on Low-Paying Jobs

[NeoConsSuck]

Source: Yahoo

Before she lost her job last November as a full-time health department caseworker in Aurora, Ill., Amy Valle was making $23 an hour. Now she's paid $10 an hour as a part-time assistant coordinator in an after-school program. "From here on out, it will be a struggle," says Valle, 32, whose husband lost his $50,000 government job and still is out of work after a year. "I don't feel like there's any place we can go to get what we were getting paid."

While the unemployment rate dropped to 9 percent in January, from a two-decade peak of 10.1 percent in October 2009, many of the jobs people are now taking don't match the pay, the hours, or the benefits of the 8.75 million positions that vanished in the recession, according to Paul Ashworth, chief U.S. economist at Capital Economics in Toronto.

This may restrain wage and salary growth, limiting gains in consumer spending, which accounts for 70 percent of the U.S. economy. The good jobs that would trigger a solid boost in spending just don't seem to be there. "In the last recovery we were adding management jobs at this point, and this time it's disappointing," says Ashworth, who published a report on Jan. 27 about pre- and post-slump employment based on U.S. Labor Dept. data. "The very best jobs, we're still losing those."

Projections from the Bureau of Labor Statistics reinforce his pessimism. While the number of openings for food preparation and serving workers will grow by 394,000 in the decade ending in 2018, the average wage is only $16,430 including tips, based on 2008 data. Meanwhile, the number of posts for financial examiners, who work at financial-services firms to ensure regulatory compliance, will expand by just 11,100. The average pay for examiners is $70,930.



Read more: http://finance.yahoo.com/news/A-US-Recovery-Built-on-bizwk-3826874585.html?x=0

---

It's called 'The race to the bottom'. And American capitalists have thrown down the gauntlet. They intend to win this race, and thereby increase profits for Wall Street.

[safeinOhio]

1. It all started with

the "dollar menu". It now cost $3.50 in gas to get there and save a nickel.

[lib2DaBone]

2. ...Change we can only imagine.

[fasttense]

3. That's what happens when you embrace that Uncle Milton "free" market religion.

All the factory jobs moved to countries with slave wages and child labor. Then the R&D moves because how in the heck can you research something if it is on another continent? Then the suppliers for those manufacturers move cause it is cheaper to transport parts to a factory near-by. Then all the management moves because how can you really manage a corporation that is two continents over?

All you really have remaining in the US is weapons manufacturing (some of it) financial voodoo money laundering and gambling, and service jobs. Service jobs do NOT grow an economy, they merely lets it barely survive.

"Lowe's (NYSE:LOW - News), the second-largest U.S. home improvement retailer, typifies the reshuffling of the U.S. workforce. The chain, based in Mooresville, N.C., said on Jan. 25 it is eliminating 1,700 managers responsible for store operations, sales, and administration as profit growth trails that of the larger Home Depot (NYSE:HD - News) chain. Meanwhile, Lowe's said it will add 8,000 to 10,000 weekend sales positions and is creating a new assistant store manager position."

So Lowe's and Home Depot sells the crap they make in China, India and Korea here for 17 times the cost. What right does Lowe's have to sell their crap here? What right does China or India or Korea have to sell their crap here? They have tariffs that prevent us from selling our crap in their countries. But not the US. We let any scoundrel who can set up a retail outlet, sell their overpriced crap here. It's a lose - lose for every American.

[FreakinDJ]

6. Uncle Milton must have been an abused child ...

to formulate such a bigoted hateful thesis - "Control Inflation with Unemployment"

[mascarax]

7. Here, here, fasttense

Don't you think the new Loew's "assistant store manager" positions will end up with most if not nearly all of the current store manager responsibilities? At less pay, of course. Hey, make those part-time too!

You have many good points...I will say about management moving to another country, that's probably one way to destroy their operations overseas!

Like the "financial voodoo money laundering and gambling". And how we need to increase service jobs (although didn't Cheney try to get fast food cooks classified as "manufacturing" because they're assembling sandwiches? remember that from about 7 years ago). Like we all can survive on those and afford a car, house/apartment, etc.

[FredStembottom]

26. I see an avalanche of "cross-training".

They train everyone, "just as backup" , on every job. Now the same jobs - with all kinds of skill levels - are increasingly done by whatever guy is available.
The "backup" guy from the front counter (who makes $10/hour) is increasingly seen doing office work (that supposedly pays $14/hour).
The warehouse guy ($14/hour) is more and more often "backing-up" the $20/hour transport driver.

And on and on............

How many retirements does it take before everyone is "cross-trained" and everyone does whatever for $10/hour?

:argh:

[FredStembottom]

27. ...with severe implications for safety......

....and quality of work.
:nuke:

[OhioChick]

16. +1000 n/t

[shanti]

17. you left out the last part

when the corps RETURN the jobs back home to us, after we have been thoroughly demoralized and downtrodden, and will accept low wages/no benefits and LIKE it. :(

[Bardley]

24. Even Milton Freidman called H-1b visa 'a subsidy to corporations from workers'

what we have was influenced by friedman, but it's actually much worse than what he prescribed

i'm not trying to let him off the hook as much as decribe how bad what we have is

[mascarax]

4. Devastating and getting worse

I really hate to write that. It's so pessimistic. But it's reality.

I hate all this "small business" talk. I think it's a RW/corporate talking point. How "all the growth is in small business", gotta help them, keep taxes down (or no taxes, just like the big guys), we all gotta work for 'em because that's where it's at, etc. But.

We all can't work for small businesses and get paid what we were getting, with similar benefits. We need to work at BIG businesses too (oh, like the ones who enjoy NOT paying U.S. taxes and outsourced our jobs) or medium-sized businesses (also outsourcing, laying off, cutting benefits, pushing salaried workers to work more for same pay). Moving the middle class to small businesses means less benefits and pay cuts of 30-60% (sometimes more).

The other one I read lately is "small businesses and home-based businesses". OK, not saying that both aren't valid, at least for some percentage of workers, but not for an overall worker model in this country for the middle class. Again, pay cuts and less benefits. I don't know the percentages of home-based workers and their pay, but I can't believe it's lucrative for many Americans, especially when we are faced with this healthcare insurance burden. And then some of these jobs are part-time, like what Amy found in the OP. I see this a lot too...so we'll be a nation of workers who work part-time (thus no benefits) at small businesses (substantial pay cuts).

And job training...so many references from everyone (incl. Dems) about getting re-trained. But for what? What jobs? What are the jobs available now and will be available? How can people invest in training when they don't know what to train for?

Sorry, any readers, guess I got up too early and haven't had but a few sips of coffee. It's just discouraging. The protests in WI and IN have been good news (not why, of course). The real culprits are the top 1% who want it all for themselves.

[eilen]

5. There are smaller scale industries that do employ

500-700+ people that pay decently, provide full benefits. Many end up getting consumed (purchased) by the larger corporations to eliminate competition. But they are out there and can be built. We are so conditioned to see the small owner operated /freelancer business vs the big corporation as the only options.

[FreakinDJ]

8. As you said are consumed by larger corporations

If people realized how their 401K savings have financed and fueled the Corporate Raiders of Wall St. who have led the charge against Unions and Pension Benefits for the Working Class they would be out in the streets and up in arms

Oh wait .. they are

[mascarax]

10. I know, but the key then is acquisitions

Where a few get big bucks/compensation. Their motivation is to sell the company and make money, not grow it (not all, of course, but this model seems to be growing).

I consider 500-700 employees at least a medium-sized business (they get ignored, I agree, in all the "small business" talk, and I think it's on purpose)). I've worked at those, including with less employees, say 100, but based on revenue, those weren't small businesses either. I think the "small business" RW talking point is less, probably much less than 100 employees (<50? cuz then they can offer less benefits), and they're positioning it as the main option to big corporations.

Thanks for your response. One more thing on the medium-sized companies...soon the executives are focused on "let's make this a $100 million company or $500M or $1B" so then a great company with a strong niche and good sales gets destroyed.

[eilen]

11. Once a company decides to "go public" they give up their

independence. It all really is up to the owners of the business and what their long range goals are. Some are to obviously make lots of money as fast as they can. Others are to create and sustain a family business that will provide for generations of not only family members but their community as well.

We see where the first path leads us.

[TBF]

9. K&R nt

[dotymed]

12. We must remove MONEY

from POLITICS.
We desperately need a real leader, for the people. As long as "Citizens United" and laws that allow the wealthy to choose our government exist, we will NEVER get such a leader.
A "National Strike", as Burcher calls for in a different OP, is probably our best chance to bring awareness to the tactics used by the 1%'ers who have declared a class war against us.
They have been winning for 30+ years, they have become blatant, we must realize this and fight back. Not with guns, with truth.

[shanti]

18. too late

the supremes made sure of that...

[ClarkUSA]

13. It's a classic case of supply and demand.

A close friend of mine who was a 99er on October 15, 2010 started a good job recently with a great company. He's two rungs lower on the ladder than he used to be and is making one-third less but he has much better benefits (generous relocation plan, 401K, pension plan, life insurance, company pays for continuing degrees, extra week of vacation, etc.). My friend has room to be promoted in this job where he was at a dead end in his other one because the CEO wasn't going anywhere. Overall, he's happy that he is finally employed after being out-of-work for 2.5 years with a company that has a bright future. He was driving a limo part-time when he got the job offer, so his case is an example that there is light at the end of the tunnel.

However, it's a bit like comparing apples and oranges because of the issue of supply and demand. You can't go back to an economy that no longer exists.

It will take more than two years of Obama for the economy to recover enough to make up for the many many millions of jobs lost during eight years of BushCo, especially with the Teabagger House making sure that every Democratic institution and spending initiative gets little to no funding. I hope more Democrats vote in the midterms of 2014 than they did last year. I have no doubt they will turn out in droves in 2012, because President Obama will be on the ticket against the likes of Palin, Huckabee, Romney, etc. and because of ongoing Republican anti-union aka, anti-Democratic legislative initiatives.

[social_critic]

14. OK, so somebody else understands how this works

I see so many people trying to figure out what's going on. And you have put it so well. Which makes me wonder, why is it so many young people think they can go study music appreciation and make $150,000 a year? it makes more sense to study to be an elevator repairman, get real good at it, then open your own elevator repair shop. People pay REAL GOOD to make sure elevators don't fall. It can be so painful.

[ClarkUSA]

15. Thanks.

You're right. My friend had secured a $4000 grant from his state to retrain himself prior and was pondering his choices (along the lines of what you posited but he wanted to go for a union master plumber apprenticeship program) when he got the job offer.

My advice is to apply for state education grants at your local job training center (before Republicans cut the funding) and get into a one-year program to be a paralegal or something similarly well-paying. A medical assistant is a one-year program and pays relatively well and has huge benefits due to the unions. A paralegal pays even more. Being an elevator repairman pays well, too, and it's actually listed on Yahoo! finance news stories as a in-demand occupation for the future, probably for the reason you mentioned. ;)

[Enrique]

19. here's a very telling line in the article

Meanwhile, the number of posts for financial examiners, who work at financial-services firms to ensure regulatory compliance, will expand by just 11,100.

Regulatory compliance is becoming obselete.

[ClarkUSA]

20. Why is it "very telling"?

Perhaps, like the IT profession, openings are few because supply is high? That's really the logical conclusion to make, unless you have proof that "Regulatory compliance is becoming obselete"?

Yahoo! Finance has articles where they crunch industry numbers and they regularly post stories on their homepage detailing which professions that have little to no future versus those that do. I don't think there's anything nefarious to read into a simple issue of supply and demand.

[Enrique]

22. "Robo-signers: Mortgage experience not necessary"

maybe openings are few because banks are just skipping the regulatory compliance, like they did with the foreclosure forms. If they're caught, it's not like anyone's going to go to jail.

http://finance.yahoo.com/news/Robosigners-Mortgage-apf-382327091.html

NEW YORK (AP) -- In an effort to rush through thousands of home foreclosures since 2007, financial institutions and their mortgage servicing departments hired hair stylists, Walmart floor workers and people who had worked on assembly lines and installed them in "foreclosure expert" jobs with no formal training, a Florida lawyer says.

In depositions released Tuesday, many of those workers testified that they barely knew what a mortgage was. Some couldn't define the word "affidavit." Others didn't know what a complaint was, or even what was meant by personal property. Most troubling, several said they knew they were lying when they signed the foreclosure affidavits and that they agreed with the defense lawyers' accusations about document fraud.

"The mortgage servicers hired people who would never question authority," said Peter Ticktin, a Deerfield Beach, Fla., lawyer who is defending 3,000 homeowners in foreclosure cases. As part of his work, Ticktin gathered 150 depositions from bank employees who say they signed foreclosure affidavits without reviewing the documents or ever laying eyes on them -- earning them the name "robo-signers."

(...)

[Kievan Rus]

21. Feudalism here we come!

[Bardley]

23. all 'recoveries' for the last 20 years have been on lowered expectations and wages

of those 'getting back on their feet'

it's all part of a larger, well defined process of globalization, that BOTH p[arties have been a part of

[Safetykitten]

25. A downward spiral that will not end well...

Jobs that go away forever becuase of technology, jobs paying much less for the ones that are there, and gas/energy prices skyrocketing feed on each other.

A future nation where a very previledged few will have health insurance, a job that is not a 1099, and that actually pays money ennough to survive is where we are going.

[apnu]

28. This is what happens in a consumption based economy.

If nobody is working, then nobody can buy anything. If nobody can buy anything, then consumption stops. It is really that simple. Which is something the Repukes do not seem to understand. You can always tell when someone does not know what they are talking about if they over explain simple concepts like this.

[Kingofalldems]

29. Kick this one.