The Good News and Bad News of Recessionary Wages

by News Guy on June 10, 2010

via Coupon Sherpa

We recently published a new post, “The Good News and Bad News of Recessionary Wages,” that I thought you might like. Jobs are up over 500,000 since December…but is this news really all that great?  To dig a little deeper, we compiled the latest good news, bad news and possibly irrelevant news concerning the current job market in hopes of providing some insight.

Good News

1. Merit Increase Budgets
Major employers anticipate a 2.8 percent budget increase for merit raises in 2010, as opposed to a 1.7 percent increase in 2009. The question is which employees will receive those raises.

2. Unfreezing Wages
Fifty-two percent of U.S. employers froze pay in 2009 for some or all employees, according to WorldatWork’s latest salary budget survey. Happily, more than 50 percent of those surveyed plan to resume normal pay levels in some areas this year. Roughly seven percent will reinstate salaries across the board. Another 25 percent plan to prolong freezes into 2010.

Bad News

9. Median Income Down
The 2009 median American income was $27,590 per year, or $13.26 per hour, according to the U.S. Census Bureau. Just one year earlier, the median average was $42,270 per year and $20.32 per hour.

10. Minimum Wage Off Pace
The present federal minimum wage is $7.25, up from $5.15 a decade ago. When you put that in terms of 2010 dollars, however, the 1999 minimum wage was $6.59. Factor in the 28.31 percent cumulative increase in cost of living (a 2010 dollar equals $1.28 in 1999 cash) and you’ll find hourly workers have lost a huge amount of ground in 10 years.

You can read the rest here!

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