It's Not Just the Jobs Lost, but the Pay in the New Ones

The earnings gap between the highest-paid employees and the rest of the work force is still widening, as it has over most of the last 30 years. The trend is most striking in factories, which accounted for the bulk of job losses in the last three years and tended to pay above-average wages. In contrast to previous recoveries, when companies rehired a large proportion of laid-off workers, manufacturers have added only 91,000 jobs this year, having eliminated more than two million jobs in the previous three years. The largely permanent decline in manufacturing employment, which has been more acute after this recession than in previous ones, spans all levels from blue-collar workers through senior management. It has coincided with a bulge in the number of jobs in low-paying fields that are comparatively easy to enter: retail sales, hotel services and clerical work. The ragged pattern of the recovery has given rise to the political debate, with Senator John Kerry, the Democratic nominee, saying that new jobs pay, on average, $9,000 a year less than the jobs that were lost. [more]