American Wages Remain Flat for a Decade
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Kokouu/Getty Images(NEW YORK) — Wages for American workers have been at a standstill for the past 10 years, according to a new report by the Economic Policy Institute.
Inklings of an improving economy are making appearances through increased home sales and a declining unemployment rate, but trends still show American wages remaining flat across all job categories.
EPI President and study author Larry Mishel said wages are “dead in the water,” and even workers with a college degree aren’t immune to the trend.
“Wages have been flat for people, for those in business occupations, for those in the so-called STEM occupations — Science, Technology, Engineering and Mathematics,” Mishel said Wednesday.
While earnings of the top 1% have increased and corporate profits have grown, most Americans haven’t experienced real wage gains, affecting workers from the bottom-up — all the way through the 80th percentile.
The findings pre-date the great recession of 2007, going all the way back to 2002. The report used employer-based and household-based survey data, as well as compensation trends.
Forecasts for the near future don’t seem too promising either, according to EPI economist Heidi Shierholz.
“With so few outside job opportunities, employers simply do not have to offer substantial wage increases to get and keep the workers they need,” Shierholz said.
The report calls for wage growth policy solutions, including increasing minimum wage and restoring workers’ bargaining powers.
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