Wages Falling Fast— and Might Not Come Back

This consequence of the recession hearkens back to Depression

By Evann Gastaldo, Newser Staff

Posted Jan 11, 2011 9:30 AM CST

(Newser) – More bad news for the unemployed: You may very well return to the workforce, but it will likely be at a significantly lower wage than you were earning before. The Wall Street Journal offers up the stories of workers who went, in one case, from a $150,000-per-year money manager job to $8.85-per-hour Starbucks barista; in another, from a managerial position to a janitorial one. Even those who manage to remain in their original industry will likely face lower earnings.

This recession has seen one of the sharpest and fastest wage declines since the Great Depression. One study shows that more than half of the workers who lost long-term, full-time jobs reported earnings loss when they returned to the workforce; 36% said they were making at least 20% less. And many may never earn their pre-recession salaries again, says one economist. The good news: The ability to offer lower wages is allowing many employers to start hiring again, and could ultimately make the US more prosperous.

Job seekers search for jobs at WorkSource Oregon Friday, Jan. 7, 2011, in Tualatin, Ore. (AP Photo/Rick Bowmer)

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COMMENTS

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Showing 3 of 49 comments

SteveLee

Jan 12, 2011 10:59 AM CST

American corporations are taking adavantage of this Recession to drive the wages of the few Americans they hire as low as they possibly can. The record profits they have been posting are then invested in new equipment and facilities in...Monterrey, Mexico: http://www.patriotactionnetwork.com/profiles/blogs/the-north-star-heads-south?xg_source=activity

gilgordan

Jan 12, 2011 7:37 AM CST

In the last 20 years we have been "Dumbing Down" our future generations and balancing our global intellectual presence. It the natural order of humanity, that with loss of intellect, economics would follow. So now in balancing our economic global presence from high to moderate, we find falling wages to compete with our global counterparts, and rising prices do to higher demand by our global neighbors. One factor remains whether domestic or global, "there is them that got, and those that have not"

SilenceDogood

Jan 11, 2011 6:44 PM CST

All of these wonderfully insightful comments on the evils of capitalism, corporate monopolies and “the man is keeping us down”; has it occurred to you bunch of panty wearing snits that the global economy we find ourselves in is the great equalizer? We are competing, in the global wrestling match of all times, with the Pacific Rim and China for global domination and you bunch of wining twits want to find someone to blame? Look in the mirror, for there you will find the fool. If not, then get a plan, start a company, do something; but get your shit together and quit blaming someone else for your inactions.

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Wages Falling Fast— and Might Not Come Back

This consequence of the recession hearkens back to Depression

OTHER STORIES ON OUR RADAR

wages • recession • unemployment

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More Newser Stories

Pay Cuts: America's New Norm

Nine straight months of declining pay sets new record

Wages Are Up—for Workers With Jobs

Avg. weekly pay hit $618 last month, up from $612

Wages of Young Workers Declining

They're down over the last decade, in contrast to overall numbers

Fed Sees High Unemployment All Next Year

Forecast sees it at 8.6% at end of 2012

Paycheck Data Dismal in 2010

...Unless you were a millionaire

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