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Showing posts with the label income disparity

2015 Picks Up Employment Steam- Will You Will Be Getting a Raise?

The American economy is picking up steam and zooming forward. According to the Bureau of Labor Statistics the economy added 257,000 non-farm payroll positions in January ( 1 ). U.S. Labor Secretary Thomas E. Perez characterizes this employment increase as, " 2015 is picking up right where 2014 left off – with strong, steady, sustained job growth that is leading a dynamic recovery " ( 2 ).  Great news that could have an impact on future wages but who will be getting a raise depends on market position. Even though the unemployment creaked up from 5.6 to 5.7% much of this has been attributed to people jumping back into the job market. When people are not searching for work their numbers are not counted. However, as they engage back in their searches and applying the numbers become more accurate as previously unaccounted for people rejoin the statistical measurement. The value of labor is determined in part by the availability of labor; lower unemployment numbers are good. T

Does the Improving Economy Offer Opportunities to Raise Social Mobility?

The word “economy” is on everyone’s lips.   Things are looking bright for those who have a stake in the economic system. Markers in the service and manufacturing sectors are progressive and provide opportunities to put people to work while lowering the nation’s growing income disparity. The new economy offers the possibility to resize an unbalanced ship so that it finds benefits in hydroplaning to new levels.  The Institute for Supply Management’s non-manufacturing index increased to 58.7% while sixteen U.S. non-manufacturing industries led by construction and education also experienced growth ( 1 ).   To complement this growth the service sector also realized expansion adding further strength to the recovery and providing higher levels of employment. According to the Commerce Department manufacturing also received positive growth numbers ( 2 ).   The U.S. is moving into a stronger competitive position that furthers its ability to maintain momentum. Manufacturing increases

Service Industry Not the Cause of Wage Polarization

Wage polarization is a growing concern among both academics and government officials. Wage polarization is an occurrence where lower skilled workers and higher skilled workers are vastly different in their earning potential. Research by Author and Dorn (2013) discuss the reasons why such polarization is occurring and which industries are raising lower skilled employment opportunities. The advent of technology is here! Computerization of routine tasks is apparent and those who have not mastered new skills are finding their jobs displaced. The past 25 years have experienced a decline in lower skilled earnings and employment opportunities. The authors indicate that changes are likely to occur across four dimensions: 1.) Greater adoption of information technology; 2.) Reallocation of low-skilled workers from routine tasks to service occupations; 3.) Larger increases in both employment and wages at both the highly skilled and lower skilled labor markets; 4.) Larger inflow