Slow Economic Recovery Blamed on Low Wages
After almost three years since the official ending of the recession in June 2009, there are 12.7 million people still without work. This does not include those who want to work but have given up seeking employment and part time workers. If these sectors are considered, the figure rises to 22.8 million. This has been highlighted by the slow economic recovery and the growth in employment recorded during March this year.
Another factor concerning the slow economic recovery is that the growth in jobs that has taken place is primarily in the significantly low wage occupations. It is logical that any business will not increase the number of employees until the pace of consumer spending improves.
Consumer spending has been restricted by the loss of housing assets, ongoing unemployment and general economic in security. These factors have all contributed to a slow economic recovery in the demand for goods and services. Political in-fighting in Washington has also had a negative affect on government spending.
Various observers contend that there is a discrepancy in the skills provided by unemployed workers and those needed by employers, which results in continuing high employment figures. Claims are made that middle-income jobs are becoming scarce, with the demand being workers at the top and lower echelons of the employment ladder.
Accordingly, the spending power of many citizens is being eroded by the reduced financial benefits they are receiving, the result of this slow economic recovery. However, although this has developed into a popular concept among some media, it should follow that this type of imbalance would cause an increase in wages for those particular occupational sectors. This related increase in wages has not been visible!