Downturn's Ugly Trademark: Steep, Lasting Drop in Wages

[Hissyspit]

Source: Wall Street Journal

JANUARY 11, 2011

Downturn's Ugly Trademark: Steep, Lasting Drop in Wages

By SUDEEP REDDY

- snip -

In Massachusetts, Kevin Cronan, who lost his $150,000-a-year job as a money manager in early 2009, is now frothing cappuccinos at a Starbucks for $8.85 an hour.

In Wisconsin, Dale Szabo, a former manufacturing manager with two master's degrees, has been searching years for a job comparable to the one he lost in 2003. He's now a school janitor.

They are among the lucky. There are 14.5 million people on the unemployment rolls, including 6.4 million who have been jobless for more than six months.

But the decline in their fortunes points to a signature outcome of the long downturn in the labor market. Even at times of high unemployment in the past, wages have been very slow to fall; economists describe them as "sticky." To an extent rarely seen in recessions since the Great Depression, wages for a swath of the labor force this time have taken a sharp and swift fall.

Read more: http://online.wsj.com/article/SB10001424052702304248704575574213897770830.html

[xchrom]

1. Recommend

[a kennedy]

2. here's some more info on jobs.....

Last week's employment report was disappointing, with the economy adding about 50,000 fewer jobs in December than expected, but robust hiring by bars and restaurants may be a sign of better days.
The food services industry added 25,000 jobs last month and was the biggest contributor to a 47,000 jump in employment for leisure and hospitality — the top job creator among 14 broad sectors the government tracks.

All U.S. employers added 103,000 jobs last month — far fewer than the 150,000 many economists expected — restaurants' strong showing is an encouraging sign for the job market overall, some economists say.
"It's an important sector to have growing because it ... consistently adds significant numbers of jobs during expansions," says Dean Maki, chief U.S. economist of Barclays Capital. "It's a very reliable indicator that the overall job market is picking up."

Restaurants and other food and drinking places were among the biggest job producers of 2010, adding 188,000 positions. Hiring picked up sharply in the second half of 2010, with food and drinking establishments adding 130,000 jobs since August.

Some new hires have jobs because sales at restaurants open at least a year increased in September and October compared with those months in 2009 — only the second and third such increases since May 2008, according to the National Restaurant Association.

"The industry's gradual recovery is definitely gaining a foothold," says Hudson Riehle, the association's senior vice president.

Restaurant revenue closely tracks consumer spending and job growth. Consumer spending was up 4% in the fourth quarter, Maki says. Because the industry is labor-intensive, more sales usually lead to more staffing, Riehle says. Restaurants' hiring has also helped lower unemployment among less-educated workers, because many restaurant jobs don't require a college degree. Fifty-eight percent of restaurant employees had only high school diplomas in 2008.

http://www.usatoday.com/money/economy/employment/2011-01-11-restaurantjobs11_ST_N.htm

[Jackpine Radical]

3. For some, maybe it's "ugly."

For others, it's "Mission Accomplished."

[rfranklin]

4. But CEO salaries are rising...when will people wake up?

No, instead they rant about public sector workers and school teachers. How stupid can you be?

[xchrom]

5. our fellow citizens like bright and shiny stuff over there

and don't care for the ugly right in front of them.

it's easier to blame public sector workers and teachers than to jail a bankster.

[Hissyspit]

6. +1