The National Employment Law Project, analyzing employment trends four years into the recovery, reported in the ‘New York Times’: while employment has finally surpassed pre-recession levels, the deep recession wiped out millions of high and middle wage jobs, with the strongest growth in lower wage work. Higher wage jobs, like accounting and legal work, lost one million jobs during the recession (3.6 million lost – 2.6 million added), while 2 million lower wage jobs were lost (3.8 million added). The report concluded that employers feel no pressure to raise wages for those who are working, with 10.5 million Americans (many qualified for middle and higher wage jobs), still out of work. What do we see in Real Estate? Jobs paying over $150,000 account for 10% of our jobs (5% pay $200,000 – or more), while jobs paying $100,000 or less have increased. Overall, employers have been paying less than prerecession levels for the same job. The government is concentrating on lower wage issues, but the need is for job creation incentives. When employment rises, compensation rises.
April 30, 2014