Wednesday, September 8, 2010

NELP report on low-wage job growth

NELP has released a preliminary report on recent job growth. From their press release:

While the recession depleted jobs in every field in 2008-2009, private industry growth since then has been disproportionately driven by industries that pay median wages below $15.00 an hour.
The best chart from the report:
(note that job losses on the lest measure a full year while job gains on the right measure 7 months- they are not meant to be directly measured against each other, just to show the difference in proportion)

Their conclusion:

The analyses presented in this data...reiterate the continuing crisis of weak job growth, one that is stalling economic recovery in communities across the country.

[They also document] a second trend that could be equally challenging to hopes for a broadly shared recovery: the disproportionate growth in mid- and especially lower-wage industries on the one hand, and the weak growth and even continued losses in higher-wage industries on the other.
...
[H]ow much of this unbalanced growth is permanent?...[W]hile we can expect some improvement in the wage profile of previously-temp jobs when permanent hiring picks up, it is difficult to predict whether there will be a significant impact on aggregate wage outcomes.

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