The paper says that about nine out of 10 workers have seen inflation
that has outpaced their pay increases over the last three years,
according to the Labor Department.
http://money.cnn.com/2006/08/28/news/economy/real_wages/index.htm?section=money_topstories
August 28 2006
Report: Most not seeing real wage gains
Expansion could be first since WWII when wages don't outpace prices
for most workers.
NEW YORK (CNNMoney.com) --
Most workers have not seen wage gains keep pace with inflation during
the current economic expansion, the first time that has happened since
World War II, according to a published report.
The New York Times reports that the median hourly wage for American
workers has declined 2 percent since 2003, after factoring in
inflation.
Median wages are the point at which equal numbers of workers earn more
and less.
The paper reports that while average family income, adjusted for
inflation, has continued to advance at a good clip, that has been
helped by gains by the top wage earners.
The paper says that about nine out of 10 workers have seen inflation
that has outpaced their pay increases over the last three years,
according to the Labor Department.
That includes workers earning up to $80,000 a year, a level that puts
them in the 90th percentile of wage earners.
The paper reports that with employment gains softening in recent
months, inflationary pressures stay high due to factors such as high
energy prices, so the gap between wages and prices could increase for
many workers.
The paper reports that the gap between the top wage earners and other
workers is growing.
It cites research from economists Emmanuel Saez and Thomas Piketty
that showed that in 2004, the top 1 percent of earners --a group that
includes many chief executives --received 11.2 percent of all wage
income, up from 8.7 percent a decade earlier and less than 6 percent
three decades ago.
In addition, corporate profits are growing more quickly than wages and
salaries.
Employee pay now makes up the lowest share of the nation's gross
domestic product since the government began recording the data in
1947, according to the paper, while corporate profits have climbed to
their highest share since the 1960s.
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Harry
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