Over 10.5 million unemployed Americans are still searching for work as we move forward into this recession recovery period. The last few years have seen a significant regeneration of employment opportunities over all. However, a recent report released by the National Employment Law Project indicates that the quality of new job growth may neither be sustainable nor holistically beneficial to a struggling economy. The survey indicates that low-wage positions have increased substantially after having only lost least amount of workers. Responsible for 44%of post-recession employment growth, jobs paying an average wage of between $9.48- and $13.33 are more prevalent. Many former upper level workers are now experiencing minimum wage compensation and filling low-level jobs.
In states where the minimum wage is equal to the federal standard millions of skilled former business professionals and service no longer have mid-wage job opportunities to fill, as the mid-level employment accounts for only 26% of recovery. After being responsible for 37% of employments loss in the recession, just 26% of new growth has been job opportunities paying between on average $13.73-$20 per hour. There are nearly a million fewer mid-level job opportunities for the middle class, which is resulting in even more class disparity. High-wage jobs paying an average of $20.03-$32.62 make up 30% of new opportunities during the economic recovery which has not begun to compensate for the 41% loss they represented. An estimated 46.5 million Americans still live below the poverty line, with average take home pay still far below that of pre-recession income rates.
40% of new job growth has been in industries such as food services and retail which are historically low income opportunities. President Obama has increased pressure on the U.S. Congress to approve legislation that will raise the federal minimum wage from its current $7.25 to $10.10 improving wage rates for an estimated 16.5 million workers nationwide. However opponents argue that mandating higher wages will once again decrease employment rates and see are resurgence of employment growth stagnation, as many businesses will not be able to keep their current staffing numbers let alone hire new laborers. Proper Wallingford financial management is essential to any business when weathering federal litigation changes, especially when trying to protect your employees while maintaining your bottom line.
At Sinclair Risk & Financial Management we understand your commitments and the conflicts that businesses face when trying to balance everyone’s best interest. We specialize in Risk Evaluation and Financial Management Strategizing for companies of all sizes. Our team of talented veteran professionals will gain a full understanding of your management philosophy, goals, and individual risk tolerance to help you develop comprehensive business strategies to help you withstand any economic challenges that may arise. Give us a call at (877) 602-2305, as we would love the opportunity to speak with you about any of our services and Wallingford Business Insurance offerings.