According to a report that has just been released by the National Employment Law Project, 58 percent of the jobs that have been created since the end of the recession have been low paying jobs. So exactly what is a low paying job? Well, the National Employment Law Project defines it as a job with an hourly wage between $7.69 and $13.83. But of course you can’t pay a mortgage or support a family on $13.83 an hour. Even if you got full-time hours the entire year, you would make less than $28,000 on an annual basis. The federal poverty level for a family of five is $27,010. So needless to say, most of these new jobs are not paying enough to support a middle class lifestyle. This represents an economic failure on a fundamental level. Our economy is producing very few good jobs that enable people to be able to raise families and live the American Dream. The ranks of “the working poor” are exploding and the number of Americans that are dependent on the government is sitting at an all-time record. Sadly, if current trends continue things are going to get a lot worse.
The numbers compiled by the National Employment Law Project are absolutely stunning. Most of the jobs lost during the recent recession were mid-wage jobs, and most of the jobs created since then have been low wage jobs. This represents a fundamental shift in our economy. Just check out these figures….
-21 percent of the jobs lost during the last recession were low wage jobs paying between $7.69 and $13.83 an hour.
-58 percent of the jobs created since the end of the recession have been low wage jobs paying between $7.69 and $13.83 an hour.
-60 percent of the jobs lost during the last recession were mid-wage jobs paying between $13.84 and $21.13 an hour.
-22 percent of the jobs created since the end of the recession have been mid-wage jobs paying between $13.84 and $21.13 an hour.
But even the high end of the mid-wage pay scale is not that great.
If you make $21.13 an hour and you work full-time hours for the entire year you will end up making about 42,000 for an entire year.
Yes, that can probably support a family of four in most areas of the country, but you really have to scrimp and save to do it.
And keep in mind that 80 percent of all the jobs being created now pay at that level or less.
Welcome to the new U.S. economy.
It really stinks for workers.
The truth is that there has been a fundamental cultural change in our economy. Workers are no longer valued. They are viewed as expensive liabilities that should be disposed of as rapidly as possible once their usefulness has ended.
There is very little loyalty to workers these days, and most big corporations do not really care about the quality of the lives of their workers. The number of companies offering health insurance to their workers continues to decline (and thanks to Obamacare that decline is accelerating even further), and the number of companies offering pension plans to their workers continues to decrease as well.
At this point, less than 25 percent of all jobs in the United States are good jobs, and that number continues to shrink.
Is this because the big corporations are not making enough money?
Not at all.
In fact, corporate profits have been setting all-time records in recent years….