[The recession destroyed good, solid middle class jobs and the 'recovery' has replaced (only a portion of) them with a smaller number of crummy McJobs. *RON*]
The U.S. economy has come a long way from the recession. The unemployment rate is now at 6.7%, compared with a peak of 10% in late 2009.
Of course many have pointed out that this ignores that the unemployment rate fell in part because many people left the labor force. But there is another disappointing trend about the job recovery the U.S. has seen.
Most of the job losses during the labor market downturn from January 2008 to February 2010, came from high and mid-wage industries.
The latest report from the National Employment Law Project (NELP), via George Magnus, shows that in the recovery, from February 2010 to 2014, most of the job growth has come from lower-wage industries.
There are 1.85 million more jobs in lower-wage industries now than before the recession, and two million fewer jobs in the mid and higher-wage industries than before the recession.
Here are the details from the report (verbatim):
- Lower-wage industries constituted 22 percent of recession losses, but 44 percent of recovery growth.
- Mid-wage industries constituted 37 percent of recession losses, but only 26 percent of recovery growth.
- Higher-wage industries constituted 41 percent of recession losses, and 30 percent of recovery growth.