Labor Day Blues Show Jobs Don't Pay Like They Once Did
NEW YORK (TheStreet) -- Entering the Labor Day weekend, one thing is clear: Wages aren't rising, and truth be told, they haven't been rising for 35 years. What may turn heads during this long weekend is that the stagnant nature of pay is especially true for those at the middle and upper levels of employment.
Across the income spectrum -- among the wealthy, the middle-class and those living at or below the poverty line -- salaries in the first half of 2014 declined for most U.S. workers when adjusted for inflation, according to a study by the Washington-based Economic Policy Institute. And that's at a time when inflation has been extraordinary sluggish, well under the Federal Reserve's 2% target, despite dire warnings from hawkish economists.
This year's flat wage growth extends a trend that has been largely uninterrupted since 1979, economist Elise Gould said in the study made public earlier this week.
Whether Yellen will get her wish may depend on whether voters force politicians in Washington to make wage expansion a cornerstone of the 2014 mid-term elections.
Happy Labor Day.
Read More: GDP Is Better Than Good -- but Interest Rates are Still Not Going Up -- Written by Leon Lazaroff in New York. Follow @leonlazaroff >Contact by Email.
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