California, former auto worker Maria Gregg was out of work five months last year before landing a new job—at a nearly 20% pay cut.
![[WAGES]](http://si.wsj.net/public/resources/images/P1-AY977_WAGES_NS_20110110174502.jpg)
In Massachusetts, Kevin Cronan, who lost his $150,000-a-year job as a money manager in early 2009, is now frothing cappuccinos at a Starbucks for $8.85 an hour.
In Wisconsin, Dale Szabo, a former manufacturing manager with two master's degrees, has been searching years for a job comparable to the one he lost in 2003. He's now a school janitor.
They are among the lucky. There are 14.5 million people on the unemployment rolls, including 6.4 million who have been jobless for more than six months.
But the decline in their fortunes points to a signature outcome of the long downturn in the labor market. Even at times of high unemployment in the past, wages have been very slow to fall; economists describe them as "sticky." To an extent rarely seen in recessions since the Great Depression, wages for a swath of the labor force this time have taken a sharp and swift fall.
(Darren Hauck for The Wall Street Journal)
Dale Szabo, who has two master's degrees, lost a job as a manufacturing manager in 2003. In late 2005 he took a job as a school janitor: 'I never dreamed I would be doing it. But I have to pay the bills.'
The only other downturn since the Depression to see similarly large wage cuts was the 1981-82 recession. But the latest downturn is already eclipsing that one. Unemployment has stood above 9% for 20 straight months—longer than the early 1980s stretch—and is likely to remain above that level for most of 2011, putting downward pressure on wages.
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part time and temp is the trend, is also big in japan/asia. standard of living will drop.
ReplyDeletestates and fed tax revenues will also, forcing some layoffs/pay cuts etc etc, increasing unemployment, union cuts to hrs/pay, manufacturing leaving adds to the mix, add mix with existing mix and a feedback loop starts, hard to get out of, add some QE and tax/fee rises and price rises in food/fuel and...
but stocks will rise and save the day as that's the money and the way to enrich all people everywhere?
so, let me ask, what kind of a fancy-ass "money manager" was making 150k? and why??? doing what? clearly, all he is good for is working in starbucks, and "bad economy" is just a lame excuse. if you are good, you are good. period. no starbucks.
ReplyDelete12:14, you are wrong,
ReplyDeletePrior to the downturn, I was making $92,000.00 a year, I worked my backside off, I was never looking for an easy ride, and I felt I was damn good at what I did. In our area, our economy has been hit with the intensity of a F5 hurricane. many of the last remaining Mfg. facilities have all but closed down or have idled back so far they are working with a skeleton crew.
Fancy ass or not, I went to college, paid for my colege, bought a house that both my wife and could afford, tried to save money and above all, we played by the rules.
Yet, the banksters, liars, cheats and politicians did this to us. Yes, there are some out there who were not worth a crap, unfortunately, either the were the ploiticians, who should have been keeping watch or people like you who sit on their rears and draw conclusion. I would be safe to bet you are a momma's boy, going to colledge while Mom and Dad bust their keisters trying to pour some sense into your sorry butt.
12:14,
ReplyDeleteI'm not the kind that assumes someone with a worthless degree is qualified more than anybody else in many cases, but there are those with great talent who are pushed into the shadows.
How do you think the Harvard and Yale graduates make all the money they do and yet seem to drive this country into the ground worse than a mentally retarded person could?
Rap music today takes no talent. There are millions of bands or aspiring stars in America trying to get noticed and can't. People actually come to believe girls like Avril Lavigne or Lady Blah Blah are the best LA can come up with.
Think again. It's done deliberately. American Idol same thing - they pick specific people to go through, funny ones like Sanjaya so people at home will watch to laugh at them. As far as rap goes or trashy skanks like Gaga, it's done to ruin the spirit of music and destroy the youth.
The destruction we are facing has both deliberate causes and typical human incompetence. Not all people who are in bands on MTV have talent - some do. Not all Harvard graduates have intelligence - some do.
You're also dealing with social conditions when it comes to getting selected. The most immature, overweight, and idiotic moron could get hired over a well mannered, bright minded, and hard working individual. How? All that fat dumb guy has to do is impress the employer by mentioning the football game. If that manager just happens to like what he says a clique is formed.
Shallow perception and a lack of inner development amongst the "individuals" of the collective, and these kinds of people having too much power, is the true source of our frantic predicament on earth at this time.
And believe me, those who think their jobs are safe and the job losses are only occurring "to them over there" are in for a rude awakening.
The nations largest private employer, Walmart, has stopped paying the $1.00 hour extra for Sunday work. There is nothing their employees can do about it.
ReplyDeleteI talked to a friend over the weekend who said that his place of employment has also eliminated all differential pay and has also cut vacation and other leave drastically.
Those left with a job are seeing their workload increase and their benefits and pay decline.
People posting against each other are doing the Elite a favor who want us to be at each others throats.
ReplyDeleteThose who have jobs might be scared to death of losing that job.
Also remember eventually those people losing their job is going to effect you in one way or another.
Mike Rivero might be right the Government has outsourced jobs so people lose their jobs then lose their houses so the Banks can cover up their mortgage fraud.
Then if the US dollar is devalued either directly or indirectly thru inflation then you will lose even if you have a job.
I agree with 3:10. You guys are truly a bunch of morons just fighting with each other. What a bunch of morons. Honestly. You're attacking one another about why you lost your jobs??? Are you crazy?! Think about it. You are attacking another person about why he lost his job and you don't even know him or what kind of work he did. What gives you the right to criticise someone that you do not even know? Give it a rest! God, people today have such "little minds" don't they -- can't see the forest for the trees.
ReplyDeletePlease people, USE SPELL CHECK! As for 3:23, he/she is correct that we must be more tolerant of one another. FYI -- it's "The forest FROM the trees." Peace!
ReplyDeleteAlcoa the worldsa leading aluminum manufacturer releases earnings today; beating the street's expectations and bringing 3 plants back on line
ReplyDeleteI work at plant #2 in Massena, N.Y.
I have never been so happy in my life - much of what is stated here I believe to be true but sometimes I think we have a tendancy to go a bit overboard
There's only one way Alcoa brings these smelting plants back on line
Consumer demand
Actually it is forest for the trees.
ReplyDeleteYou are right 3:23:, but 12:14 is obviously an intolerant moron that passes judgment on anyone and everyone blindly. You got laid off and lost your job? You deserve what you get and should be ashamed of yourself! Really, what kind of strange thought programs is this person running inside his head? Millions of people are losing their jobs and all this person can muster up to say is how idiotic someone is for making more than 100k and getting laid off.
ReplyDeleteJanuary 11, 2011 11:26 AM
ReplyDeleteAnonymous said...
so, let me ask, what kind of a fancy-ass "money manager" was making 150k? and why??? doing what? clearly, all he is good for is working in starbucks, and "bad economy" is just a lame excuse. if you are good, you are good. period. no starbucks. said 2.14
12:14, you are wrong,
Prior to the downturn, I was making $92,000.00 a year, I worked my backside off, I was never looking for an easy ride, and I felt I was damn good at what I did."
You can feel your labour and colledge degrees are worth whatever you like .
But, there is pre ponzi economics and post ponzi "austerity" economics .
either you deliver up a profit in todays conditions for your boss or its the door.
That is what determines whether you are 'good" at your job or not.
clearly your now a failure at that.
your high self opinion of yourself aint worth shit.
So,
Got yourself your own a job at starbucks yet ?
you had better hurry ,Starbucks is closing down many of its shops .As their are not so many
big spenders earning $92000 now that can afford their latte and tip the crew too.
"There's only one way Alcoa brings these smelting plants back on line
ReplyDeleteConsumer demand "
Consumer demand?
world aluminium prices like copper iron and coal prices are driven by Chinese demand dominating the world markets.
Their Governments huge stimulus spending has created a boom time property bubble in China .
like the property bubble in america it will have a short life as the chinese consumers cannot now afford the prices.
Inflation in china is on the rise.
So grab all the overtime while it lasts.
You can thank the Chinese central bank for that overtime not uncle Ben.
As Bernankes stimulus is not creating much work or demand for window frames used for housing constuction in america.
4.51
ReplyDeleteare you a good news, happy ,happy
government "recovery" troll ?
You say:
Alcoa the worlds leading aluminum manufacturer releases earnings today; beating the street's expectations and bringing 3 plants back on line
I work at plant #2 in Massena, N.Y.
I have never been so happy in my life - "
so things are great in your little corner of the boomtime american world????!
I am happy happy for you too!
But ,Other economic news reports today are telling us a different story .
That things are grim for alcoa !
quote :
Stocks fall on disappointing Alcoa news January 13, 2010
.AAP
NEW YORK - A disappointing profit report from Alcoa and moves by China to curtail growth raised concerns among investors that the global economy will have trouble recovering.
Stocks fell on Tuesday after earnings and revenue from aluminum producer Alcoa Inc fell short of expectations. Alcoa is usually the first big US company to report quarterly results, and investors look to its numbers for an early read on overall corporate earnings.
Alcoa said higher metal prices had been offset by weakness in the aerospace, construction and gas turbines businesses. Revenue also fell.
...Perhaps ,this reality check may mean a lay off for you too ,soon?
I can only tell you what I know and what I know is that we are one of 3 plants coming back on line next week and my foreman says that our "big three" which are autos, packaging ( soda cans and such ) and wiring are all up double digit.
ReplyDeleteI don't care where it's going, I'm making it and damn glad to have my job back earning a decent wage.