Although millions of the previously lost jobs during the recession in US have now been restored, but they are not paying as much as they used to.
The findings of the report indicate that the industries with lower-wage accounts for around 22% of job reductions during the period of recession, but at the same time, added 44% of jobs in the last four years. Contrary to that, industries with higher wage accounts for 41% of job reductions but only show 30% growth in employment since the post-recession period.
Low paying industries such as food services and temporary jobs make up 39% of the job gains since the recession in the job market.
The movement from higher to lower paying jobs comes just as the economy steps in its fifth year of one of the weakest recoveries till date. Michael Evangelist, the author of this study, says that without strong growth, there is very less chance of increase in wages by employers.
He said, “Low-wage workers are very easy to bring on and very easy to let go. So you need strong economic growth to boost these mid-and high-wage industries and increase hiring there.”
Although the level of US employment has improved generally, still the growth in employment has been the weakest, even in the highest paying industries like construction for instance. In the meantime, the job creation in low paying jobs such as food services and health care has been fairly strong.
The Senate is ready to debate a bill focused on raising the minimum federal wage to USD 10.10 an hour, in three steps, by the year 2016.
This step would uplift the earnings for around 28 million of the lowest paid American workers who are gradually losing ground to a number of political and economic forces since 1970’s.