Sunday, April 5, 2015

We are in a "jobless recovery"

From CNN.com:
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If job growth has been strong, why aren't wages going up?

We are in a "jobless recovery."

Job growth is distressingly low for this stage of the long recovery, now in its 69th month.

It took 6½ years from January 2008 until May 2014, for the economy to just get back the jobs lost during the Great Recession and we are still lagging behind the normal post World-War II recovery pattern.

Slow job growth is costly for the unemployed and their families.

It also slows overall growth, reducing the economy's potential growth, which further slows the economy, in a spiral of stagnation.

The Congressional Budget Office confirms this self-feeding slowdown.

Its potential GDP estimate for 2017 has fallen by 7.3% since its estimate at the start of the recession, which translates into over $320 billion in lost economic activity...

[another] reason for low wages is that jobs created in the recovery pay worse than the jobs we lost in the Great Recession.

The recovery jobs are concentrated in retail sales, food services, cashiers, stock clerks, and maids and housekeepers -- all low-wage sectors.
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Link: http://www.cnn.com/2015/04/03/opinions/mcgahey-minimal-wage/index.html

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