Richard Florida is a co-founder and editor at large of CityLab and a senior editor at The Atlantic. He is a university professor in the University of Toronto’s School of Cities and Rotman School of Management, and a distinguished fellow at New York University’s Schack Institute of Real Estate.
One more piece of evidence for the lopsided nature of America's economic recovery.
While United States employment is up, wages are declining, according to numbers released today by the Bureau of Labor Statistics [PDF]. The report covers the U.S. as a whole but, interestingly for Cities readers, includes detail on the jobs situation by county.
Employment increased nationally by 1.6 percent, or 2 million jobs, for the year September 2011 to September 2012. But, average weekly wages for the country as a whole declined by 1.1 percent (taking the figure down to $906 per week in Q3 2012). This is one of only six annual average weekly wage declines since 1978, the report notes. Wages declined across all industries save for the information sector, which saw a modest increase of 1.3 percent.
When the economy crashes, we all crash together: corporate profits, employment, and growth. But when the economy recovers, we don't recover together. Corporations rack up historic profits thanks to strong global demand, cheap global labor, and low interest rates, while American workers muddle along, their significance to these companies greatly diminished by a worldwide market for goods and people.