More Americans have a job today than they did a year ago, and employment levels have returned to historical levels from the inflated mortgage-caused collapse of the economy in 2008 and 2009. But as we know, many of these jobs are at lesser skill levels and at lesser wages. Both parents are likely to work, and at the lowest wage levels, some workers tend two jobs rather than one.
Limited or non-existent wage increases during the last decade and a half for all but those in the top quarter of the employment spectrum continue to be a curse. Compensation in the workplace seems to no longer respond to increased experience and productivity.
As a result, a trend of mandated wage increases has begun, as voters in municipalities scattered across the country use the ballot box to increase pay at the lowest levels for some positions. Economists seem to be uncertain as to how that will work out, as the effort is clearly inconsistent. Fast-food workers might receive increases, as an example, but not equally needy home health-care workers.
Adjustments are already occurring. Some restaurants in Seattle have combined an increase in menu prices to cover a larger payroll with the promotion of a “no tipping” rule.
Wal-Mart and a couple of other very large retailers are progressively raising pay for their employees, but that may be mostly driven by the need to counter excessive turnover.
Henry Ford famously wanted his employees to make enough money to be able to purchase one of the Model T’s that was coming off the assembly line, revolutionary thinking at the time; Wal-Mart is at least doing more than that.
For those wanting a better-paying job, the nod goes to those who can move to a location where there is a match between skill and need. Renters have had that ability, and stronger home prices – many but not all areas in the country have returned to close to 2006 price levels – make that easier today. A component of the recent look-back 10 years after Hurricane Katrina struck New Orleans was that many who left their damaged homes and resettled elsewhere felt they were doing much better than they would have had they remained in New Orleans and rebuilt.
For years, education has more likely meant employment and a better job, and still does. Those without a high school education have no chance at advancement. Both community colleges and four-year colleges are doing a better job of matching student education with the jobs that await. Publicity about the amount of student debt in the aggregate – below that of home mortgages but somewhat more than what is owed on automobile purchases – makes it clear that students must be mindful of costs. For-profit colleges have come under scrutiny for over promising, so students know to be wary. In addition, a student who does not complete a skills program, or who drops out of a four-year college without a degree, will have a difficult time earning enough to comfortably repay those loans.
Good communication skills are key to employment at every level, and students seem to be making progress in that direction. Every state has been putting more emphasis on reading and writing skills, whether in conjunction with federal government mandates or not. At four-year colleges, some of the best students are double majoring, one in a specialty and one in an area of communications.
The U.S. is on reasonably solid economic footing, and we can expect that next year at this time employment numbers will be at least somewhat better. But wages likely will not be. Step up to acquire more education and be willing to relocate.
