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The benefits of a strong labor market translate into higher wages for many of those left behind by the economic boom of the past decade, including young Americans, low-income households and the least educated.
In September, the unemployment rate fell to 3.7%, its lowest level since 1969. This creates labor shortages and wage gains, not only for highly skilled workers who have the highest wage, but also for low-skilled workers and workers. whose wages are late.
A study by the Conference Board this week showed that shortages of low-paid jobs and services are most glaring, in part because of the slow growth of the labor force among people without a university degree. He found that wages in industries, such as construction and maintenance, have increased more in recent quarters than wages in executive jobs.
Salaries in the retail sector, for example, rose 3.8 percent in the second quarter, more than the 3 percent increase for professional service workers, according to the Department of Labor.
Salaries by industry
Information and finance workers saw their profits grow the most over the last year.
Change of the previous year
Transportation and warehousing
Change of the previous year
Transport and
storage
Change of the previous year
Transport and
storage
Change of the previous year
Transport and
storage
"The demand for blue-collar services is increasingly demanded, but the number of people interested in these jobs is shrinking," said Gad Levanon, one of the report's authors.
The lowest-paid Americans saw their weekly earnings rise more than 5% in the second quarter from the previous year, up 1.7% from the national average for all workers, according to a quarterly survey conducted by the Department of Labor on Households. Workers who have not completed high school have seen their wages increase by almost 6%, and that of young workers by almost 3%.
"In times of recession, they are often the first to be fired and, when resuming, they may be the last to be rehired," said Harry Holzer, professor of public policy at Georgetown University. "This means they are the ones who benefit particularly in today's job market."
Overall hourly wages increased 2.8% in September compared with the previous year, according to the latest survey conducted by the Department of Labor.
Patrick Jones left high school in 2013, then worked in parcel handling for
FedEx
and as additional help to a sawmill. He was then attracted to a vocational training program and subsequently landed a job to eliminate invasive species and restore native plants on behalf of the California Sonoma County Water Authority earlier. this year. He earns more than 19 dollars at the hour; it is the highest paid job he has ever held.
"I lived check to check. I could not support myself and my girlfriend. I could not pay rent anywhere at all, "Jones said. Now, his new job helps him invest money in a 401 (k) and buy a new car.
Highlighting the trend,
Amazon.com
Inc.
said this week that he would set a base salary of $ 15 an hour for all his workers.
Other factors besides the labor market are also at stake. The minimum wage increases in the United States have had the effect of increasing the wages of the lowest paid and least educated workers, who tend to occupy jobs in the services and retail sector. In the past four years, 21 states and Washington, DC, have increased their minimum wage, as have major metropolitan areas such as Seattle.
Achon Hightower, the 36-year-old director of Burger King, began enjoying the benefits of rising wages in Sacramento after California began gradually raising its minimum wage. She is currently earning $ 11.50 an hour and expects the last rate of $ 15 that employers will have to pay by 2020. The extra money will help save money to buy a mattress. she needs.
"Every little bit helps," says Hightower, adding that she always sleeps on an air mattress. "I can not wait until we reach $ 15 at the hour," she said. "But with the cost of living on the rise … it's still not enough."
Write to Sharon Nunn at [email protected]
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