Reply #44: "Still on the Job, but at Half the Pay" [View All]

[Zenlitened]

By LOUIS UCHITELLE, The New York Times
Published: October 13, 2009

...In recent decades, layoffs were the standard procedure for shrinking labor costs. Reducing the wages of those who remained on the job was considered demoralizing and risky: the best workers would jump to another employer. But now pay cuts, sometimes the result of downgrades in rank or shortened workweeks, are occurring more frequently than at any time since the Great Depression.

(snip)

The Bureau of Labor Statistics does not track pay cuts, but it suggests they are reflected in the steep decline of another statistic: total weekly pay for production workers, pilots among them, representing 80 percent of the work force. That index has fallen for nine consecutive months, an unprecedented string over the 44 years the bureau has calculated weekly pay, capturing the large number of people out of work, those working fewer hours and those whose wages have been cut. The old record was a two-month decline, during the 1981-1982 recession.

“What this means,” said Thomas J. Nardone, an assistant commissioner at the bureau, “is that the amount of money people are paid has taken a big hit**; not just those who have lost their jobs, but those who are still employed.”


More:
http://www.nytimes.com/2009/10/14/business/economy/14income.html?_r=1&hp

**Hmmmm... Do you think that "big hit" will be reflected in the amount of money they spend, here in our consumerism-dependent economy? -- Zenlitened