On Labor Day Weekend Eve, Bad News/Good News for American Workers

This week, the New York Times ran a story (log in required) that detailed just how much the economy has grown -- and how little the average Joe’s wages have kept up with this growth. It’s not a new topic, but the article revealed some sobering facts:

• After factoring for inflation, Americans’ median hourly wages have declined 2 percent since 2003, while productivity, the amount an average worker produces in an hour, continues to rise.
  


• Workers’ pay now makes up the lowest share of GDP since the government began recording the data in 1947. In the meantime, corporate profits are at their highest share since the ’60s.

In plain English: Most of us are working harder but being paid less (comparatively speaking) for it. According to the article, the disparity has a lot to do with factors like the decline of unions, globalization and outsourcing, and technology.

It’s easy to get depressed when you read stuff like this -- just look at the low consumer confidence -- and to be honest, there’s plenty of reason to be. But I like to look at the bright side: The Bureau of Labor Statistics reported this morning that the unemployment rate for August dropped slightly to 4.7 percent from July’s 4.8 percent -- good news for us all. President Bush has signed into law a pension reform bill that, while certainly not a cure-all, will provide more retirement security for older workers. And their entry-level counterparts are facing a moderately bright future, according to the MonsterTRAK “2006 Entry-Level Outlook.”

But the best news of all? We’ve got three days off! Enjoy your Labor Day weekend.

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