Americans who already enjoyed high incomes saw the most growth in their wages in 2019, according to a new report released Thursday, while wage growth for low hourly workers was sluggish—a continuation of what the Economic Policy Institute calls an “alarming trend” that has emerged over the last four decades.
In its report, “State of Working America Wages 2019,” EPI revealed that median hourly wages grew by just 1% over the past year, with racial and gender wage gaps persisting, while earners in the 95th percentile saw their incomes grow last year by 4.5%.
Common Dreams
February 28, 2020
These findings come as median hourly wages in 2019 increased by just 1%, according to a report released Thursday by the Economic Policy Institute, a left-of-center think tank. The median wage last year was $19.33 per hour, which translates to about $40,000 per year for a full-time, full-year worker, according to the institute.
“Wage growth for low- and middle-wage workers continues to be slower than would be expected in an economy with relatively low unemployment,” said EPI senior economist Elise Gould in prepared remarks for her report. “Given this sluggish wage growth, policymakers should not presume that the economy has already achieved full employment
Washington Examiner
February 28, 2020
REPORT FINDS WAGE GROWTH REMAINS ‘SLOW, UNEVEN AND UNEQUAL’: A report by the left-leaning Economic Policy Institute found that while wages have grown slightly over the last 40 years, since 2007, the top 10 percent of earners have seen the greatest growth in wages. The report also found that since 2000, white and Hispanic workers have seen more rapid wage growth than black workers. Researchers also found that the median pay gap between men and women has shrunk over the last year, with an average woman earning 85 cents to an average man’s dollar.
Politico
February 28, 2020
“I think that maybe we lowered the bar about what it means to be thriving when the Great Recession came and so many people were in such desperation trying to make ends meet,” said Elise Gould, senior economist at the Economic Policy Institute.
The job market has improved, with “jobs being added, by and large, across the economy,” Gould told the Deseret News, but with limited wage growth acting as an anchor instead of a balloon, most families are not making great gains.
Deseret News
February 28, 2020
(Bloomberg) — In the 11th year of a record expansion, the rising tide of the U.S. economy hasn’t been lifting all boats equally –- at least when it comes to pay. Unemployment is the lowest for half a century, and wages have been picking up steam across the board –- but the biggest rewards from a strong economy are still skewed toward white people, men and high earners, according to an annual study by the Economic Policy Institute. The findings contradict some of President Donald Trump’s key talking points. The president frequently calls the economy the best ever, and argues that previously left-behind groups are benefiting from a “blue-collar boom.”
While there have been gradual improvements for many, some disparities have actually worsened over time — such as the wage gap between blacks and whites, which is wider now than in 2000. Along with tight labor markets, minimum wage legislation at the local level has helped deliver some of the gains for low earners, the EPI data show.
BNN Bloomberg
February 28, 2020
The data is included in the latest study of U.S. wages from Elise Gould of the Economic Policy Institute (EPI). According to Gould, the top 5% of earners “continue to pull away from middle- and low-wage workers.”
24/7 Wall St.
February 28, 2020
Monique Morrissey, an economist with the non-profit Economic Policy Institute, based in Washington, D.C., understands why most advisory firms ignore the masses. “The problem with 50% of the population is that they have no assets to speak of, except for home equity in some cases.”
Many of the fintech websites, Morrissey notes, have entered this space and are selling services that reach a wider audience than the usual highly affluent niche. “They can pay attention to the lower income people,” she says.
RIA Intel
February 28, 2020
Heidi Shierholz, director of policy at the Economic Policy Institute, said the fact that wages have remained stagnant, coupled with a low unemployment rate, means workers are more apt to strike because if they’re fired for striking, finding another job won’t be too difficult.
And, Shierholz said, when workers see other workers winning higher wages or other benefits from striking, it can inspire more strikes.
“I think within the next year [low unemployment and slow wage growth] will remain, and then to the extent that this activity inspires other activity that’s probably also a factor,” Shierholz said. “That can make it easier for workers to contemplate going on strike.”
NJ.com
February 28, 2020
According to the Economic Policy Institute, the suggested annual budget for a single adult living in Calloway County with no retirement savings or emergency budget is around $32,000. However, a person working full-time earning minimum wage in Kentucky earns only around $15,000 a year.
The Murray State News
February 28, 2020
Sustainable human capital is relevant for all companies in driving performance, regardless of their opinion on societal good.
That statement came from a corporate governance expert I respect very much. But I question the premise.
Directors & Boards
February 28, 2020