Thu. Apr 25th, 2024

From today’s Los Angeles Times:

Unemployment is hovering near a five-decade low, workforce participation is at the highest level in six years and Federal Reserve Chairman Jerome H. Powell recently called the labor market “strong.”

Yet, 44% of Americans age 18 to 64 are low-wage workers with few prospects for improving their lot, according to a Brookings Institution report.

An estimated 53 million Americans are earning low wages, according to the study. That number is more than twice the number of people in the 10 most populous U.S. cities combined, the report notes. The median wage for those workers is $10.22 an hour and their annual pay is $17,950.

Although many are benefiting from high demand for labor, the data indicated that not all new jobs are good, high-paying positions. The definition of “low-wage” differs from place to place. The authors define low-wage workers as those who earn less than two-thirds of the median wage for full-time workers, adjusted for the regional cost of living. For instance, a worker would be considered low wage in Beckley, W.Va., with earnings of $12.54 an hour or less, but in San Jose, Calif., the low wage bar rises to $20.02 an hour.

“We have the largest and longest expansion and job growth in modern history,” Marcela Escobari, coauthor of the report, said in a phone interview. That expansion “is showing up in very different ways to half of the worker population that finds itself unable to move.”

Read the complete article here.

By Editor