Since the Crash in 2008 There are 8.4% Fewer Jobs That Pay Between $13 and $20 an Hour

It was in the 1990s that American multinationals, spurred by government policy, began outsourcing operations to China. At the same time, the Clinton administration steadily relaxed antitrust enforcement, leading to massive corporate consolidation and the creation of the virtual firm. By the early parts of the last decade, the ideal American multinational made its profits by using its market power to gut labor and supply prices and by using its political power to eliminate taxation. All of this turned giant American institutions against making things. This is why we rely on a British factory to make our flu vaccine, why global videotape production was knocked offline by a tsunami and why that same event slowed the gigantic auto industry. US corporate leaders now see the idea of making things as a cost of doing business, one best left to others. What has happened as a result is that much of the production for critical products and services that make our economy run is constructed by a patchwork global network of suppliers all over the world in unstable regions, over which we have very little control. An accident or political problem in any number of countries may deny us not just iPhones but food, medicine or critical machinery. - Matt Stoller, How America Could Collapse, The Nation, August 11, 2011

Study Says Mid-wage Jobs Hurt Hardest by Recession

July 27, 2011

The Lookout - A study by the National Employment Law Project finds that middle-wage jobs--those that pay between $13 and $20 an hour--have been the biggest casualty of the recession. This year's job market has 8.4 percent fewer jobs in that pay range than existed prior to the onset of the crash in 2008.

This is leading to an "hourglass economy," the researchers write, with disproportionate numbers of Americans finding themselves at the top or bottom of the wage scale.

Most of the job growth since the recession has been in low-wage jobs, which shot up 3.2 percent in 2010, even as real wages for those workers have declined. The researchers say "retail salespersons, office clerks, cashiers, food preparation workers and stock clerks" have seen the fastest growth in available positions.

The economy has seen a 4 percent drop in higher wage jobs (those paying between $20 and $53 an hour) and a .3 percent decline in low-wage jobs since early 2008. But those wage sectors have still sustained a better recovery than mid-wage jobs have.

The lag actually pre-dates the '08 collapse, researchers say, with mid-wage occupations such as machinists and pre-school teachers growing at a markedly slower pace than higher-wage and lower-wage jobs did. "Growing wage inequality in the United States is a phenomenon that's three decades in the making, and which the recession only exacerbated," NELP policy director Annette Bernhardt said in a statement.

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