Economy 101: High Unemployment Holds Down Pay

Economy 101: High Unemployment Holds Down Pay

<p>Economy 101: High unemployment holds down pay</p><p>By CHRISTOPHER S. RUGABER, AP Economics Writer Christopher S. Rugaber, Ap Economics Writer – Fri May 7, 2010 4:54 pm ET</p><p>WASHINGTON – Employers are finally ramping up hiring, but they're not paying their existing workers much more.</p><p>Hourly pay barely rose last month, according to the Labor Department's April jobs report, as employees have little bargaining power to demand higher wages. That's partly because there are still 15.3 million unemployed workers who would happily switch places, economists say.</p><p>Average hourly earnings rose by a penny to $22.47 in April. That's after falling two cents in March and is only two pennies higher than January's $22.45 figure.</p><p>In the past year, hourly wages are up only 1.6 percent. That's less than the rate of inflation, which rose 2.3 percent in the 12 months ending in March, mostly due to rising gas prices.</p><p>Excluding the volatile food and energy categories, the consumer price index rose 1.1 percent in the year ending in March.</p><p>Wage gains are likely to remain weak in the near future because there is so much competition for jobs, economists say. There are about 5.5 unemployed people, on average, for each job opening.</p><p>These and other details can be found in the government's latest jobs report.</p><p>___</p><p>HIRING PICKS UP ...</p><p>290,000: Jobs added in April</p><p>230,000: Jobs added in March</p><p>39,000: Jobs added in February</p><p>___ ... BUT UNEMPLOYMENT RATE RISES...</p><p>9.9 percent: Unemployment rate in April</p><p>9.7 percent: Unemployment rate in January, February and March</p><p>10 percent: Unemployment rate in December and November</p><p>___ </p><p>... AS WORKFORCE GROWS </p><p>805,000: New jobseekers in April </p><p>398,000: New jobseekers in March </p><p>342,000: New jobseekers in February </p><p>___ </p><p>THE JOBLESS OLYMPICS: LATEST UNEMPLOYMENT RATES </p><p>(Source: Organization for Economic Cooperation and Development) </p><p>3.8 percent: South Korea </p><p>5 percent: Japan </p><p>7.8 percent: United Kingdom </p><p>7.3 percent: Germany </p><p>9.9 percent: United States </p><p>19.1 percent: Spain </p><p>___ </p><p>STILL LOOKING </p><p>45.9 percent: Proportion of unemployed out of work six months or longer, highest on records dating back to 1948 </p><p>33 weeks: Average length of unemployment in April, also a record </p><p>6.7 million: Number of people jobless for six months or longer, also a record 1.3 million: Number unemployed for that long in December 2007, when the recession began </p><p>___ </p><p>WHERE THE JOBS ARE </p><p>44,000: Jobs added in manufacturing </p><p>21,000: Jobs in restaurants and bars </p><p>20,100: Jobs added in hospitals, nursing and other health care sectors </p><p>14,000: Jobs added in construction </p><p>12,400: Jobs added by retailers </p><p>7,300: Jobs added in computer services </p><p>___ </p><p>WHERE THEY'RE NOT </p><p>-21,000: Job losses in couriers and messengers </p><p>-6,000: Job losses in state and local government </p><p>-700: Job losses in air transportation </p><p>___ </p><p>UNDEREMPLOYED </p><p>9.2 million: Number of part-time workers who would have preferred full-time work </p><p>2.4 million: People without jobs who want to work but have stopped looking </p><p>17.1 percent: "Underemployment" rate in April if you include the above two categories </p><p>17.4 percent: Underemployment rate in October, the highest on record dating to 1994 </p><p>___ </p><p>APRIL UNEMPLOYMENT RATE BY GROUP </p><p>11 percent: Female heads of households 6.8 percent: Asians </p><p>9 percent: Whites </p><p>12.5 percent: Hispanics </p><p>16.5 percent: Blacks</p>

View Full Text

Details

  • File Type
    pdf
  • Upload Time
    -
  • Content Languages
    English
  • Upload User
    Anonymous/Not logged-in
  • File Pages
    4 Page
  • File Size
    -

Download

Channel Download Status
Express Download Enable

Copyright

We respect the copyrights and intellectual property rights of all users. All uploaded documents are either original works of the uploader or authorized works of the rightful owners.

  • Not to be reproduced or distributed without explicit permission.
  • Not used for commercial purposes outside of approved use cases.
  • Not used to infringe on the rights of the original creators.
  • If you believe any content infringes your copyright, please contact us immediately.

Support

For help with questions, suggestions, or problems, please contact us