Despite little, if any, expected real wage growth in 2014, the jobs picture is likely to improve. This is because the percentage of new jobs in notoriously low paying sectors like retail trade, restaurants, temporary help and home healthcare should decline while the number of jobs in manufacturing, construction and other middle skilled jobs increases. This improving job mix will lead to increases in take-home pay and improved consumer spending.
Tag Archives: low wages
Wishing for Wages
While the economic recovery will soon enter its fifth year, wage growth is invisible. In part, it’s because unemployment is high, but also because more and more jobs are in leisure/hospitality and retail. These two sectors now account for 21% of US employment, yet pay just $13/hour and $16/hour respectively. Manufacturing pays $23/hour, yet employs just 9% of the workforce. Good paying jobs are being lost and not being replaced.