Why wages are finally rising

Mar 2012
58,084
39,646
New Hampshire
#1
Unemployment was low. Hiring was strong. Corporate executives were complaining that they could not find people to fill all of the available jobs. Yet workers’ paychecks were growing only sluggishly, barely outpacing inflation. And then wage growth suddenly picked up.

Average hourly earnings in March were 3.2 percent higher than a year earlier, the eighth straight month in which growth topped 3 percent. The monthly jobs report, which will be released by the Labor Department on Friday, will most likely show that the streak hit nine in April.

Wage growth, long stuck in neutral, has at last found a higher gear. It turns out we just had to wait a few years for the labor market to get tighter. The recent gains are going to those who need it most. Over the past year, low-wage workers have experienced the fastest pay increases, a shift from earlier in the recovery, when wage growth was concentrated at the top.

Better-paying industries have experienced faster job growth in recent months, while the fastest wage growth had been in lower-paying industries. That could indicate that sectors like health care and manufacturing are snapping up workers, forcing retailers and restaurants to raise pay to compete.

The recent uptick in wage growth suggests a simpler explanation: Perhaps the job market wasn’t as good as the unemployment rate made it look. “You look at those people who do not want a job, people who were out of the labor market due to disability, all of those people are coming back in,” said Adam Ozimek, an economist who has studied the issue.

Why Wages Are Finally Rising, 10 Years After the Recession
 
Likes: johnflesh

HCProf

Council Hall
Sep 2014
28,912
18,373
USA
#3
Our Votech HS just received an award for job placement. The trades are literally booming. Several of the trade programs, such as Construction, Welding and CNC manufacturing is sitting at 100% job placement and the student have not graduated yet. Employers are coming to classrooms to recruit HS students with the 11th graders. It was the wages that surprised me....we started an apprentice program by partnering with local employers. Those kids are receiving 20.00 a hour at this point. 18 years old and earning 40K a year. One Mom at the award ceremony said her son is earning more than she is. In the 10 years that I have worked there....this is the first time I have witnessed employers clamoring over HS kids.
 
Likes: bajisima
Apr 2015
15,414
2,895
Katmandu
#4
Our Votech HS just received an award for job placement. The trades are literally booming. Several of the trade programs, such as Construction, Welding and CNC manufacturing is sitting at 100% job placement and the student have not graduated yet. Employers are coming to classrooms to recruit HS students with the 11th graders. It was the wages that surprised me....we started an apprentice program by partnering with local employers. Those kids are receiving 20.00 a hour at this point. 18 years old and earning 40K a year. One Mom at the award ceremony said her son is earning more than she is. In the 10 years that I have worked there....this is the first time I have witnessed employers clamoring over HS kids.
Same here, employers are very actively engaging with high school vocational and vocational schools to recruit employees. The kids attend classes while they are still in high school and are ready to go when they graduate high school.
 
Likes: bajisima

HCProf

Council Hall
Sep 2014
28,912
18,373
USA
#5
Same here, employers are very actively engaging with high school vocational and vocational schools to recruit employees. The kids attend classes while they are still in high school and are ready to go when they graduate high school.
Even before they graduate with part time jobs. Our auto mechanic program is another success story. One of the larger oil change places visited a class and offered interviews right on the spot for changing oil. They were willing to work around school schedules and offered a good wage. I have never seen employers this involved before. Another successful program....the aeronautic program. One of the corporate jet companies locally donated a plane to the program!! Those kids leave with a pilots license and have a pipeline to those corporate jet companies.
 
Likes: bajisima
Apr 2015
15,414
2,895
Katmandu
#6
Even before they graduate with part time jobs. Our auto mechanic program is another success story. One of the larger oil change places visited a class and offered interviews right on the spot for changing oil. They were willing to work around school schedules and offered a good wage. I have never seen employers this involved before. Another successful program....the aeronautic program. One of the corporate jet companies locally donated a plane to the program!! Those kids leave with a pilots license and have a pipeline to those corporate jet companies.
That's really cool. It's also good that these kids, many of whom didn't need or want a four year degree, are out there starting a career and earning a living instead wasting time in college where they aren't really prepared for a career.
 

HCProf

Council Hall
Sep 2014
28,912
18,373
USA
#7
That's really cool. It's also good that these kids, many of whom didn't need or want a four year degree, are out there starting a career and earning a living instead wasting time in college where they aren't really prepared for a career.
Another plus... our programs have articulated with community colleges and State universities for college credit. The students earn one year of college credit and can work while attending college. I am really glad to see job availability again for teens. Back when I was in HS, we all worked at various places. Maybe our work ethic will improve in the US now that teens are building their resumes earlier.
 

HayJenn

Moderator
Jul 2014
70,245
60,296
CA
#8
Our Votech HS just received an award for job placement. The trades are literally booming. Several of the trade programs, such as Construction, Welding and CNC manufacturing is sitting at 100% job placement and the student have not graduated yet. Employers are coming to classrooms to recruit HS students with the 11th graders. It was the wages that surprised me....we started an apprentice program by partnering with local employers. Those kids are receiving 20.00 a hour at this point. 18 years old and earning 40K a year. One Mom at the award ceremony said her son is earning more than she is. In the 10 years that I have worked there....this is the first time I have witnessed employers clamoring over HS kids.
My son worked a temp job a while ago at a place that trains electric linesman. Said got a lot of applications from people who have never worked in that industry before, but it was pretty good money. Good to see the "blue collar" jobs making a comeback.

I still see a ton of ads for Truck Drivers. Even with bonuses, don't seem like a lot of takers, at least in my area.
 
Likes: HCProf
Mar 2012
58,084
39,646
New Hampshire
#9
Our Votech HS just received an award for job placement. The trades are literally booming. Several of the trade programs, such as Construction, Welding and CNC manufacturing is sitting at 100% job placement and the student have not graduated yet. Employers are coming to classrooms to recruit HS students with the 11th graders. It was the wages that surprised me....we started an apprentice program by partnering with local employers. Those kids are receiving 20.00 a hour at this point. 18 years old and earning 40K a year. One Mom at the award ceremony said her son is earning more than she is. In the 10 years that I have worked there....this is the first time I have witnessed employers clamoring over HS kids.
Here too. Both my daughters companies are recruiting again at community colleges and 4 year universities. Neither have done that since the early 2000s. The trades are going absolutely nuts here too. Welding jobs can be 60K to start and machinists even more. I keep joking I am going to take classes and be a machinist. They make a fortune and quite honestly with CNC and computers its amazing!
 
Likes: HCProf
Mar 2012
58,084
39,646
New Hampshire
#10
My son worked a temp job a while ago at a place that trains electric linesman. Said got a lot of applications from people who have never worked in that industry before, but it was pretty good money. Good to see the "blue collar" jobs making a comeback.

I still see a ton of ads for Truck Drivers. Even with bonuses, don't seem like a lot of takers, at least in my area.
I have seen quite a few older couples actually getting into trucking recently. They get one of those big sleeper rigs and off they go! Not glamorous but I suppose its decent money and travel.