Why Your Wages Aren’t Going Up
Why Your Wages Aren’t Going Up
Unemployment is down to 5.4%! Yay!
That was the summary of last week’s unemployment report. Yet the two-track “recovery”?—?about to enter its seventh year?—?continues. Average hourly wages increased by only 0.1% in April and 2.2% for the past twelve months, which amounts to basically nothing when you take inflation into account.
This is what the new normal looks like. Wages barely rise during periods of economic “expansion” (you know, the opposite of recession), then fall when unemployment spikes during a recession. In the long run, that means that average real earnings actually go down, and household income can only keep up if people work more hours. Yet the number of full-time jobs is lower today than it was before the financial crisis.
Source: http://www.philstockworld.com/2015/05/14/why-your-wages-arent-going-up/
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