Fastest Decline in Real Wages on Record

[elehhhhna]

October 28, 2005

By JARED BERNSTEIN

Employers' wage costs grew 2.3% over the past year, the slowest growth rate on record, according to today's report from the Bureau of Labor Statistics. Factoring in the recent energy-driven increase in inflation, the real wage is down 2.3%, also the largest real loss on record for this series that began in 1981.

With hourly wages falling in real terms, the only way working families can raise their incomes is by working more hours-certainly not the path to improving living standards that we would expect in an economy posting strong productivity gains.

This 2.3% rate is a slight tick down from the 2.4%--the previous historical low--that prevailed for the last four quarters. Compensation-wages plus benefits-also grew more slowly in the third quarter of this year, up 3.1% over the same quarter last year, the slowest yearly growth in six years.

For the first time in this employers' costs report, the Bureau of Labor Statistics presented these values adjusted for inflation. Both wages and compensation are losing growth in real terms, down 2.3% and 1.5%, respectively, as slower nominal wage growth is colliding with faster inflation. In both cases, these are the largest yearly real losses on record.
http://www.counterpunch.com/bernstein10282005.html

[damntexdem]

1. Oh, yes, a rising tide lifts all ships.

Unfortunately, they're floating in red ink.

[DiverDave]

2. Oh, Yes, we need to make the tax cuts permanent

It is helping everybody, you know...:sarcasm:

[wookie294]

3. Well, at least the gays can't get married

and Bush means what he says and says what he means. :sarcasm:

:banghead:

[devilgrrl]

4. Not everyone lost out...

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=132x2191512

Life is what you make it :sarcasm:

[johnaries]

5. Well, the GDP is up, so the economy is fine.

IF YOU'RE RICH!!!!
Recommended.

[TheGunslinger]

12. I wonder how much the GDP would be up if the deficit spending were removed

[johnaries]

13. Obviously, the "yardsticks" they are using to measure the health

of the economy are not the right measuring tools.

This was one of Kerry's points when he was running.

[corkhead]

6. I wonder what the number would be if you carved the top 5%

wage "earners" out of the equation. I'll bet the average person took a much bigger hit than 2.3%

[InkAddict]

7. Quess I'm naughty not nice/Dem not Rethug

even so, I'd really appreciate some "virtual" coal & wood from the virtual Santa this year cause won't be makin' believe I'm the jolly old elf at Wal-Fart or anywhere else - sorry kids!

Overnight, my hours were permanently reduced 10% (to the minimum necessary to be eligible for health care bennies)and my wages reduced by another 20% to pay health care (but before taxes don't cha know - gratitude for small favor tax cuts showing :shrug:)- a real reduction in monthly take home wages of about $600.00.

[indepat]

8. And the idolatrous throngs still chant: four more years, four more years

[tabasco]

9. Not for oil company execs !

Those fat cats are sitting pretty, thanks to thier cabal's takeover of the US government. :mad:

[B Calm]

10. Cheap Labor CONServatives are in power..

[rucky]

11. Trickle-down (and flush) economics. n/t