According to a new study by the National Employment Law Project, most of the new jobs that are being created are far lower paying than the ones lost. “During the recession, employment losses occurred throughout the economy, but were concentrated in mid-wage occupations. In the weak recovery to date, employment growth has been concentrated in lower-wage occupations, with minimal growth in mid-wage occupations and net losses in higher-wage occupations.”
The study also shows that low-wage workers are making less than before, “Workers’ real wages have shown no growth since the start of the recession. Of greatest concern, workers in lower-wage occupations have seen a significant 2.3 percent decline in real wages – precisely the occupations that are generating the bulk of recovery employment growth.”
Moody’s Analytics predicts that between the fourth quarter of 2011 and the fourth quarter of 2015, the economy will create 12.1 million jobs, but they will be disproportionately low-paying ones.
With more people being employed as low-wage workers, it is more important than ever to raise the minimum wage!