For the Unemployed, New Job Often Means a Pay Cut

[undeterred]

For the unemployed, a new job in this economy often means less pay than they're used to

Unemployed for nearly a year, David Becker was relieved to land a new job in information technology last summer. The offer carried a price, though: It was a lower-rung job than the one Becker had lost. He had to uproot his family from Wisconsin to Nevada. And, like many formerly jobless people who find work these days, Becker is now paid far less than before — $25,000 less.

It's one of the bleak realities of the economic recovery: Even as more employers are starting to hire, the new jobs typically pay less than the ones that were lost. In the government's data, a job is a job. More jobs point to a growing economy. But to people who used to earn $60,000, a new $40,000 job means they'll spend less — and contribute less to the recovery.

"In most cases, it means a subdued expansion, for sure," said Marisa Di Natale, director at Moody's Economy.com. Worse for those affected, people hired at lower wages in a tight job market tend to lag behind their peers for years, sometimes decades. For example, workers laid off during the 1981-82 recession earned 20 percent less than people who remained in a job — even 20 years after they were rehired, a Columbia University study found. The study examined pay for white- and blue-collar workers, managers and hourly workers.

http://abcnews.go.com/Technology/wireStory?id=9520958

Basically, the middle class has been screwed.

[HughBeaumont]

1. SIGH.

FUCK
Corporate
America

STOP the sabotage already, you asshole motherfuckers. This isn't "being wary", it's a "Cash and Carry". I hope you enjoy being held responsible for destroying any semblence of peace of mind. I hope you sleep well at night knowing how many bullets your putting into this economy's dying body.

[Canuckistanian]

2. I'm hearing this in Canada, too

Experienced Software Engineers are being hired for the price of new grads. And usually on contracts, with no benefits or guarantee of renewal of contract on successful completion.

And they're taking it, rather than remain unemployed.

The situation must be absolutely bleak for ACTUAL new grads, most of whom are in hock for tens of thousands in student loans.

It's a real disappointment for those who got jobs during the overheated market of ten years ago.

Like me. But luckily, I'm now recently employed with the government. There's still little hope for those in the commercial world.

[lib2DaBone]

3. The corporations are playing this depression for all it's worth....

Just to get an interview.. I have had to sign documents that 5 years ago, I would not have touched with a ten foot pole.

Example:

Do you understand that if hired, you will be an "employee at will" with no benefits?


Employee agrees to work all hours and days as required without overtime consideration.

[XemaSab]

4. I am making 1/3 what I made at my last job

and no, it's not a living wage so I am staying at Casa de Mom. x(

[undeterred]

5. I got a call the other day about a contract position.

I've worked there before twice for the same rate. This time the rate is $2 less, and they are on the low side anyway.

[stevedeshazer]

6. After two years unemployment, and four years in my new job, I make 1/3 my 2003 $$$

There are a lot of these stories.

[treestar]

7. I dunno, self employed, I tend to think if he makes 40K that's good

I can't get on board feeling sorry for people making 40K, period. Too many poor people exist.

[varelse]

8. Look at the bigger picture

It's not about "feeling sorry" for individuals. Christ.

[wickerwoman]

9. But if the company expects him to work 70 hours a week

like my last company did, he could only be making $11 an hour. Trying to support a family in an expensive part of the country, that gets you to "poor" pretty damn quick.